Aib Group Regulatory News (AIBG)

AIB Group plc announces acquisition of leading Irish financial services provider Goodbody

AIB Group plc ("AIB") today announces that it has reached agreement to acquire Goodbody, a leading Irish provider of wealth management, corporate finance and capital markets services. Under the terms of the agreement, AIB will acquire 100% of Goodbody from its existing shareholders for an enterprise value of c. €82 million.

Goodbody, which manages assets of c. €8 billion and employs 300 people in offices across Ireland and the UK, provides financial services in three core segments - Wealth Management, Asset Management and Investment Banking - to both private and corporate clients. Under the terms of the acquisition, a small number of AIB staff from its Corporate Institutional and Business Banking team are expected to move across to Goodbody over time to avoid duplication.

 AIB will acquire the entire share capital for a consideration of €138m reflecting c. €82m enterprise value and c. €56m excess cash on the balance sheet. Goodbody's 2020 management accounts recorded revenue of c. €71m. The transaction does not materially impact AIB's CET1 and is modestly accretive to earnings and ROTE in the first full year of ownership.

The acquisition is consistent with AIB's strategy announced in December 2020 to make selective investments in order to address gaps in its overall customer offering and diversify income streams. This transaction marks a step in delivering the updated strategy and AIB will continue to explore further opportunities, particularly in the Life and Pensions segments.

Colin Hunt, Chief Executive Officer of AIB, said:

"The acquisition of Goodbody will greatly increase the Group's capacity to broaden its services to customers, while also enhancing the bank's growth opportunities. 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. We are focused on achieving the transformation of AIB that we announced in December 2020 and working towards our target RoTE of >8%. While the Group will optimise synergies to expand customer offerings for both existing AIB and Goodbody private and corporate clients, Goodbody will remain as a separately regulated entity with its own brand and Board."

 Goodbody Managing Director Roy Barrett, said:

"With AIB, Goodbody is aligning with the market leader and could not be better positioned to compete in the financial services sector over time. This is now the beginning of an exciting new phase of the company's development as this partnership has the potential to offer our business, our clients and our staff many opportunities for growth as we start the next chapter of Goodbody's history.''

AIB will continue to adhere to the Government's pay restrictions, with separate remuneration structures in place for Goodbody.

Completion of the acquisition is conditional on the satisfaction of customary conditions including approval by the Central Bank of Ireland and the Competition and Consumer Protection Commission.

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