Swissquote has agreed to acquire Internaxx Bank, a Luxembourg-based fully licensed online bank, from Interactive Investor for €27.7m.
The Swiss firm said that the acquisition will enable it unrestricted access to the European market. The agreement also includes goodwill of nearly 25% with Swissquote fully financing the transaction with its own funds.
Internaxx Bank, which was formerly known as TD Direct Investing International, offers active investing and financial services to global citizens. Its clients are primarily international investors and expats.
Swissquote said Internaxx Bank’s clients who are looking for online access to international investments, will be able to benefit from its even wider range of products and services to go along with the safety offered by the European bank, following the acquisition.
The Swiss firm, on the other hand, provides online financing and trading services. It also offers solutions for eForex, Robo-Advisory and eMortgage.
Swissquote CEO Marc Bürki said: “Unrestricted access to the European markets is very important to Swissquote, especially as Brexit draws closer.
“By acquiring Internaxx, we aim to further consolidate our standing as first choice for international clients (expats) thanks to our specialized services.”
Internaxx Bank is a member of the Luxembourg Deposit Guarantee Fund (FGDL), which enables it to guarantee deposits up to €100,000. The online bank is also backed by global private equity firm J.C. Flowers & Co., which is also the majority owner of Interactive Investor.
Internaxx Bank, which boasts of nearly 12,000 clients, has been functioning as a fully licensed online international bank from 2001. With a total of €2bn assets under custody, the online bank registered €10m of revenues last year.
Internaxx Bank CEO Dave Sparvell said: “Swissquote has the resources, scale and platforms to accelerate our ambition to provide clients with the broadest range of market-leading products and services.
“As we integrate the Swissquote family, we will help more expats and international investors achieve their financial objectives.”
The acquisition of Internaxx Bank will come into effect after receipt of regulatory approval, said Swissquote.