Amsterdam-based banking group ABN Amro (AMS:ABN) has announced that it has reached an agreement to acquire BUX, one of Europe’s fastest growing new brokers. With this acquisition, ABN AMRO said it aims to strengthen its footprint in the retail investment space and substantially improve its digital offering.
The parties did not disclose the price paid for BUX.
BUX was founded in 2013 and is also based in Amsterdam. The company has grown into one of Europe’s leading new brokers with 500,000 customers, operating in eight markets, although BUX exited the lucrative UK retail market earlier this year.
BUX also recently lost a number of senior executives from Cyprus-based CFDs brokerage Stryk, including CEO and head of Cyprus office Jean-Raphael Nahas, who joined MENA-based broker Zara FX as COO . Obviously Stryk will be closed as part of the acquisition. All Stryk accounts are closed and remaining balances are returned to Stryk account holders.
ABN Amro said BUX brings advanced financial technology, a user-friendly and intuitive platform and a brand that resonates strongly with the new generation of investors. The acquisition gives ABN AMRO and BUX a combined #1 position in the Netherlands for investors looking to start building their wealth. The acquisition of BUX also contributes to ABN AMRO’s pan-European growth ambition.
Annerie Vreugdenhil, Chief Commercial Officer Personal & Business Banking at ABN AMRO, said:
“It’s much more common now that people are starting to think hard about their financial future and take control of it themselves. Over the past few years, BUX has excelled in helping clients who want to do just that. Welcoming BUX to the ABN AMRO family will create a unique combination of innovative user-friendliness and financial strength, stability and know-how – a strong foundation for future growth (in the private investment sector), both for our clients and the the bank itself”.
Yorick Naeff, CEO of BUX added:
“We have always had the ambition to be the leader in retail investment in Europe and joining forces with ABN AMRO is a critical step towards achieving this goal. We strongly believe that at BUX, our speed, agility and relentless drive for innovation, combined with ABN AMRO’s deep personal finance expertise and decades-long reputation, is a synergy unmatched in the entire investment sector. This powerful combination positions BUX ideally to become a leading investment platform across Europe for everyone looking to grow their wealth for the future.”
The parties said that together BUX and ABN AMRO offer an attractive range of investment and savings products, both to new investors looking to explore the world of investing and to more experienced clients with larger investment portfolios looking for expertise to help them achieve their goals. In this way, ABN AMRO aims to grow with its customers in every aspect of their lives. This step is an additional growth investment for BUX, enabling ambitious long-term scaling and innovation, enhanced by ABN AMRO’s vast resources and infrastructure. The acquisition does not include BUX’s cryptocurrency operations.
ABN AMRO and BUX are no strangers to each other. ABN AMRO’s venture arm, formerly known as ABN AMRO Ventures, was among the first companies to invest in BUX. Also, since 2019 BUX and ABN AMRO Clearing have enjoyed a successful partnership linking the bank’s technology with the BUX app. In 2022, BUX became the first broker in Europe to offer fractional European ETFs in partnership with ABN AMRO Clearing Bank. Together they built the technology that allows investors with smaller budgets to buy parts of stocks or ETFs.
The transaction is subject to regulatory approval and is expected to close in 2024. The transaction is expected to have a minor impact on ABN Amro’s CET1 capital ratio.