Swissquote Group, Switzerland’s provider of online trading services, today announced it has completed its previously announced acquisition of Luxembourg-based online bank and investment firm Internaxx Bank S.A.
The deal, which marks Swissquote’s first significant acquisition since its buyout of Swiss forex rival MIG Bank in 2013, has already received the green light from the European Central Bank and the Luxembourg financial regulator the CSSF.
The Swiss firm said that the acquisition, whose value was disclosed at EUR 27.7 million, will enable it unrestricted access to the European market. The agreement also includes goodwill of nearly 25 percent with Swissquote fully financing the transaction internally with its own funds.
In addition, the acquisition in Luxembourg will allow Swissquote to expand its European activities in the Grand Duchy, as part of the group’s broader plans to grow internationally.
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A hedge against Brexit
Internaxx Bank has been operating as a fully licensed online international bank since 2001. Formerly known as TD Direct Investing International, it offers active investing and financial services to a global client base. However, the company portrays itself as an investment firm dedicated primarily to the expat community.
The CEO of Swiss bank Swissquote, Mark Burki, also told Finance Magnates that his company recent takeover is especially important as Brexit draws closer. “The acquisition is primarily of strategic importance for Swissquote, but also to take advantage of growth opportunities, especially in the expatriate business,” Burki elaborated.
Swissquote plans to integrate its broad range of traditional markets and products with the Luxembourg brokerage’s offering to make it available for the clients of both brands.
The company also expects this synergy to further add to its bottom lines in the future. The bank had revenue of CHF 214.5 million ($212.43 million) in 2018, which marked the first time for proceeds to surpass the CHF 200 million figure, as Finance Magnates reported.