CACEIS, a global asset servicing bank, has agreed to acquire specialist European custodian and fund administrator KAS BANK for €188m in an all-cash deal.
Image: KAS BANK to be acquired by CACEIS. Photo: courtesy of rawpixel/Unsplash.com.
As per the terms of the conditional agreement signed by the parties, CACEIS will offer €12.75 in cash for each of the KAS BANK shares.
Founded in the Netherlands, KAS BANK provides securities services for professional investors in the pensions and securities market. The company, which also has offices in the UK and Germany, offers its clients access to more than 90 markets across the world.
On the other hand, CACEIS, which is part of Crédit Agricole, serves institutional and corporate clients with a variety of services covering execution, clearing, depositary and custody, forex, securities lending, fund administration, middle office outsourcing, fund distribution support and issuer services.
The two companies expect their combination to improve positioning of CACEIS as service provider to European institutional investors. The company’s vast knowledge and expertise with regards to additional services will be available to Dutch investors including private equity funds, real estate companies and other professional investors following the acquisition.
CACEIS CEO Jean François Abadie said: “With the announcement today, we significantly upgrade our position in the Dutch market. In addition, CACEIS will further strengthen its expertise in servicing institutional investors such as pension funds and insurance companies, in order to distribute these services on a global basis.
“The combination is anticipated to create value for our shareholders and will broaden and deepen our offering in Europe.”
CACEIS’s parent firm Crédit Agricole is expected to provide a solid financial position, business continuity and support to business development to transform KAS BANK into the Dutch branch of CACEIS.
Furthermore, KAS BANK’s business after becoming a part of a large and well capitalized player is expected to grow its revenues and the resulting costs synergies from the acquisition will result in increased profitability, said the two parties.
KAS BANK managing board chairman Sikko van Katwijk said: “Teaming up with CACEIS increases our competitive strength and enhances our investment and innovation power in a market where scale is an increasingly important factor.
“Our Dutch, German and UK clients will benefit from the critical size with more than EUR 2.8 trillion assets under custody, the solid capital position and the extended product range this combination will bring.”
The transaction, which will be subject to necessary approvals, is likely to be completed in the third quarter of this year.