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Deutsche Bank (NYSE:DB) said on Friday it agreed to acquire Numis, a based boutique investment bank, for ~£410M ($511M) to grow its investment banking business in the U.K.
The move comes after Germany’s largest lender has scaled back its investment banking operations globally to cut costs and improve profitability.
After the acquisition, Deutsche Bank (DB) will combine its existing U.K. and Ireland corporate finance business with Numis “to establish a leading force in U.K. investment banking with a prominent position across corporate broking, strategic advisory (including M&A and growth capital), equity and debt capital markets and equity research, sales and execution,” it said. The deal will also leverage DB’s global product offering across the Corporate Bank and the International Private Bank.
“We have been evaluating how to accelerate the growth of our business in the UK and, as a leading UK franchise with a long history of successfully delivering superior client service and growth, Numis represents a compelling strategic fit,” said Fabrizio Campelli, head of Corporate Bank and Investment Bank at Deutsche Bank (DB).
Under the terms of the agreement, Numis shareholders will be entitled to receive a total of 350 pence per share. Numis’s largest shareholder has agreed to vote in favor of the transaction, which is expected to be completed in Q4 2023.
After closing, Deutsche Bank (DB) expects the transaction will add to its EPS from 2024 and will provide an attractive return on regulatory capital consumed. The CET1 ratio impact at closing is expected to be ~(9) basis points, the company said.
On Thursday, Deutsche Bank (DB) said it’s reducing its non-client workforce by 5%, limiting new hiring, and streamlining its mortgage operations, among other efficiency moves.
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