Deutsche Bank is investing in the UK by buying London based boutique investment bank, Numis Corp for $511 million, according to its announcement on Friday.
The deal is Deutsche Bank’s largest acquisition in over a decade, and is part of its global investment plans, and comes after Deutsche Bank’s 11th quarter profit, and news of 800 office job cuts.
“The bank had been looking to grow its business in Britain and Numis represents a compelling strategic fit,” said Fabrizio Campelli, who oversees Deutsche’s investment bank.
Deutsche Bank shares went up 1.5 percent, while Numis shares increased by 67 percent. The 350 pence-per-share, all-cash offer represents a premium of 72 percent to its Thursday close.
The transaction brings Deutsche back into equities, an important business for Numis in Britain albeit on a small scale.
“The acquisition was not a u-turn in strategy, but a move to expand its business ties with corporates clients, I hope it won’t be interpreted as a u-turn, it shouldn’t, but we understand at first glance that it might look that way.” said James von Moltke, Deutsche Bank’s chief financial officer.
Deutsche Bank’s strategy includes accelerating growth initiatives including potential acquisitions of portfolios and assets.
As part of the deal, which is expected to close by the end of the year, 35 Deutsche Bank staff will join more than 300 London based Numis staff. Numis will continue to be overseen by its co-CEOs, and will operate under both company names.
Numis makes the bulk of its revenue in the UK and has a small presence in the US, about 65 percent of its income in 2022 came from investment banking, and the rest from equities.
