AIB Group has announced it is acquiring Goodbody Stockbrokers for €138 million.
Goodbody is a provider of wealth management, corporate finance and capital markets services. It manages assets of around €8 billion and employs 300 people in offices across Ireland and the UK.
Goodbody will remain as a separately regulated entity with its own brand and board.
AIB will continue to adhere to the Government’s pay restrictions, with separate ring-fenced remuneration structures in place for Goodbody.
The Minister for Finance, Pascal Donohoe, said the acquisition was a positive development for the Irish economy.
“Today’s announcement by AIB will have positive impact for the State as a whole but primarily it will ensure that Goodbody continues to have a well capitalised owner providing opportunities for growth, which will support the wider needs of the Irish economy and businesses,” the Minister said.
“This acquisition also represents an excellent strategic opportunity for AIB to deliver on its ambition to diversify its revenue in a low interest rate environment.
“The addition of Goodbody offers growth opportunities for the AIB Group in broadening its financial offerings in the life, pension, wealth and asset management sectors, in addition to enabling its Irish corporate and business customers to access a greater range of services.”
Under the terms of the acquisition, a small number of AIB staff will transfer to Goodbody to avoid “duplication”.
AIB will acquire the entire share capital of Goodbody for a consideration of €138 million, reflecting €82 million in enterprise value and around €56 million excess cash on the balance sheet.
Completion of the acquisition is conditional on the satisfaction of customary conditions, including approval by the Central Bank of Ireland and the Competition Authority.
In a statement, AIB Group said the acquisition was consistent with AIB’s strategy announced in December 2020 “to make selective investments in order to address gaps in its overall customer offering and diversify income streams.”
[This deal is] ready to underpin Ireland’s economic recovery as we emerge from the Covid-19 pandemic
Colin Hunt, chief executive officer of AIB, said: “This is a landmark deal for the bank, as AIB positions itself for expansion in Ireland, supporting our 2.8 million customers and ready to underpin Ireland’s economic recovery as we emerge from the Covid-19 pandemic.”
Goodbody managing director Roy Barrett, said: “This is now the beginning of an exciting new phase of the company’s development as this partnership has the potential to offer our business, our clients and our staff many opportunities for growth as we start the next chapter of Goodbody’s history.’’
On Tuesday, AIB also announced the launch of a new €50 million SME equity fund with a focus on backing businesses that can help accelerate Ireland’s transition towards a low-carbon economy.
In a statement, the bank said the aim of the new fund “is to provide equity to support the growth of Irish SMEs; to stimulate job creation in the economy; and to ensure a greener future for Ireland by backing those businesses that are building it today.”