German online stock broker flatex Bank AG will acquire 100% of the Netherlands-based broker DeGiro BV in an approximately €250 million deal.
Under the deal, the FinTech Group AG unit acquired a 9.4% stake in DeGiro upon signing the agreement and will acquire the remaining 90.6% after securing approval from relevant authorities.
To finance the transaction, flatex will issue up to 7.5 million shares priced at €25.33 apiece to DeGiro shareholders and pay up to €60 million in cash. The transaction is expected to complete by the beginning of the second quarter of 2020, according to the Dec. 16 statement.
The company is targeting €150 million in earnings before interest, tax, depreciation and amortization, €300 million in revenue and an EPS of €3 in the mid-term.
Lazard acted as financial adviser for flatex and ING Groep acted in the same capacity for DeGiro. Loyens & Loeff served as DeGiro's legal adviser, while PwC acted as transaction adviser for DeGiro and as legal adviser for flatex.