(Alliance News) - AIB Group PLC said Tuesday it has agreed to buy Irish stockbroker and wealth manager Goodbody for an enterprise value of EUR82 million.
Goodbody provides wealth management, corporate finance and capital markets services. It manages EUR8 billion in assets and has 300 employees in Ireland and the UK. Goodbody recorded EUR71 million in revenue in 2020.
Lender AIB said a small number of the staff in its own Corporate Institutional and Business Banking teams is expected to move to Goodbody to avoid duplication. Both AIB and Goodbody are based in Dublin.
AIB will buy Goodbody's share capital for EUR138 million, reflecting an enterprise value of EUR82 million, plus EUR56 million in cash on the Goodbody balance sheet. AIB said the acquisition won't materially affect its CET1 capital ratio and will be "modestly" earnings accretive.
"This is a landmark deal for the bank, as AIB positions itself for expansion in Ireland, supporting our 2.8 million customers and ready to underpin Ireland's economic recovery as we emerge from the Covid-19 pandemic," said AIB Chief Executive Officer Colin Hunt.
Added Goodbody Managing Director Roy Barrett: "With AIB, Goodbody is aligning with the market leader and could not be better positioned to compete in the financial services sector over time."
AIB shares were up 1.0% at 165.50 pence in London on Tuesday afternoon following the announcement.
By Tom Waite; thomaslwaite@alliancenews.com
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Aib Group (AIBG)