Swiss private bank Julius Baer has concluded the acquisition of fully-licensed private bank Commerzbank International SA Luxembourg (CISAL).
At closing, CISAL had about EUR2.5bn of assets under management and nearly 150 staff.
Julius Baer paid a total of EUR78m in cash to Commerzbank as part of the deal, which included EUR35m of regulatory capital.
Total restructuring and integration costs for the deal are expected to be around EUR20m, the Swiss lender said.
"The transaction significantly strengthens Julius Baer’s presence in Luxembourg, where the Group is already active through its local entity Julius Baer Investment Services S.A R.L., and provides Julius Baer with a booking centre in this important European financial centre," Julius Baer said.
The acquired entity will operate as Bank Julius Baer Luxembourg S.A, and will be led by CISAL’s ex-CEO Falk Fischer.
Commerzbank former branch and country manager Luxembourg Thomas Fehr has been appointed as COO and member of the executive board of the bank in Luxembourg.
The deal, announced in December 2015, is particularly beneficial as CISAL’s banking platform runs on the same system as Julius Baer’s target platform.
"The acquired Temenos T24 platform and the related IT expertise will add relevant experience to Julius Baer’s currently ongoing worldwide platform renewal project. At the same time, the newly acquired booking centre will present Julius Baer with further strategic flexibility for servicing its European clients," the Swiss bank said.
Bank Julius Baer member of the executive board and head of Northern, Central and Eastern Europe Gian Rossi said: "CISAL is a high-quality franchise, which will enable us to further expand our footprint in this important financial centre. Additionally, the Luxembourg banking licence and CISAL’s T24 platform and expertise offer clear benefits for the Group as a whole."