BFF Banking Group aims to create a leading independent specialty finance player in the Italian market through the acquisition of DEPObank
Banca Farmafactoring (BFF Banking Group) has agreed to acquire Italian depository bank DEPObank – Banca Depositaria Italiana (DEPObank) from Equinova UK HoldCo.
The company plans to merge with the depository bank after acquiring a 76% stake in cash for a price equal to the portion of the latter’s best-quality Common Equity Tier 1 ratio which exceeds a 15% threshold, for up to €198m.
Equinova, which is a holding owned of Advent International, Bain Private Equity Europe, and Clessidra, will have a stake of 7.6% in the merged entity.
Currently, Equinova holds a stake of 91% in DEPObank’s share capital with the remaining shares owned by other Italian banks.
Based in Italy, BFF Banking Group is engaged in the management and non-recourse factoring of trade receivables due from the public administrations across Europe.
The company aims to create a leading independent specialty finance player in the Italian market through the acquisition. The transaction is expected to strengthen DEPObank’s business, and also consolidate the funding and capital resources available to serve the customers of BFF Banking Group.
BFF Banking CEO comments on acquisition of DEPObank
BFF Banking Group CEO Massimiliano Belingheri said: “The acquisition and merger with DEPObank is a milestone in the development of both banks.
“We combine two leaders in our respective niches. Together, we will be stronger.
“In the uncertain times we live, this deal allows to strengthen our customer offering, the stability of our franchises, and the opportunities for our employees. We will have more funding, more capital, more diversification.”
Formerly called the Central Institute of Italian Popular Banks (ICBPI), DEPObank was established in 1939. Currently, it is claimed to be among the leading players in Italy in the securities services and bank payments segments with a customer base of over 400 clients.
At the end of last year, the Italian depository bank had over 360 employees and total assets of €9.1bn.
DEPObank chairman Paolo Tadini said: “The transaction represents a particularly interesting opportunity for the Bank to continue the growth and development path that has been underway for years, thanks to which it has achieved leadership positions in Securities Services and Banking Payments.
“Within the Italian banking system, today a new player is being established that is able to express economic, financial and equity “fundamentals” of absolute excellence, with obvious benefits for all stakeholders.”
The closing of the deal is expected to take place in the fourth quarter of 2020, subject to the approval of BFF Banking Group’s shareholders, receipt of required authorizations, and other clearances and approvals from relevant bodies.