Bank of Ireland (LSE:BKIR) said it has completed its €427mln acquisition of Davy Stockbrokers, first announced last July, in a deal set to significantly boost its commercial and strategic goals.
The takeover follows a financial scandal that saw Ireland's largest stockbroker fined €4.13mln, the biggest fine of its kind levied on an Irish broker.
Davy Stockbrokers had €20bn in assets under management by end-2021, and Bank of Ireland (LSE:BKIR) said combining its existing wealth and insurance assets of about €22.5bn provides it with "significant scale and breadth of proposition".
"Along with the KBC Bank Ireland portfolios transaction, which recently received Competition and Consumer Protection Commission approval, completion of this acquisition demonstrates further strategic progress by the group," the company said.
In addition to the final consideration of €427mln, Bank of Ireland (LSE:BKIR) will pay excess cash of €126mln due to the sale earlier this year of Davy Global Fund Management and Davy's shareholding in Rize ETF. A further payment of up to €40mln will be due from 2025, depending on the performance of the business model.