Deutsche Bank has entered into a deal to purchase UK-based corporate broking and advisory firm Numis for £410m in cash.
As part of the deal, Numis shareholders will receive altogether 350p per share.
Numis provides its clients with strategic advice and capital market connectivity.
The firm currently caters to 166 retained corporate broking customers, involving 64 clients in the FTSE 350, accounting for around 20% of the index.
The latest deal helps Deutsche Bank to further boost its Global Hausbank strategy by expanding engagement with the UK’s corporate client segment, thereby allowing the German bank to help over 170 corporate clients with comprehensive financial and advisory solutions.
It will also see Deutsche Bank merging its existing UK and Ireland corporate finance business with Numis to create a major investment banking operation in the country.
The consolidated entity will deal with corporate broking, strategic advisory, equity and debt capital markets and equity research as well as sales and execution.
The deal, which awaits approvals for certain conditions including clearance from Numis shareholders and regulatory approvals, is anticipated to be completed by the fourth quarter of this year.
Deutsche Bank Corporate Bank and Investment Bank head Fabrizio Campelli said: “This Transaction is strongly aligned to our Global Hausbank strategy and has the potential to unlock significant value within both the Numis and Deutsche Bank franchises.
“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.”