August 2024: Top five M&A deals of the month
Mergers and acquisitions (M&A) are common occurrences in the world of fintech, often reshaping businesses and redefining the market landscape.
Here, we take a look at five of the top M&A deals in August, including highlights from BNP Paribas, NCR Voyix, Scotiabank and more.
BNP Paribas enters exclusive talks to buy AXA Investment Managers for €5.4bn
BNP Paribas set to snap up AXA IM for €5.4 billion
French banking giant BNP Paribas has entered into exclusive negotiations to acquire AXA Investment Managers (AXA IM), AXA’s asset management arm, in a deal valued at around €5.4 billion.
The deal is expected to close in Q2 2025, subject to customary closing conditions, and comprises cash proceeds of €5.1 billion with an additional €300 million consideration from the arm’s previous purchase of investment solutions provider Select.
Terms also include the formation of a “long-term strategic partnership” between AXA and BNP Paribas, through which the French banking group will provide investment management services to AXA.
The insurance giant says the decision to exit the asset management business underscores its strategy “to simplify its business model and to focus on its core insurance activities”.
NCR Voyix agrees to sell digital banking unit to Veritas Capital for $2.45bn
NCR Voyix has entered into a definitive agreement to sell its cloud-based digital banking business to private equity firm Veritas Capital for $2.45 billion.
The business offers digital banking, customer engagement, payments, lending, analytics, compliance and API solutions which are currently active across “1,300 top-tier financial institutions and over 20 million active users”.
Its sale includes a future additional contingent consideration of up to $100 million, and is forecast to close by the end of this year, subject to the approval of regulators.
NCR Voyix says proceeds will be used to “accelerate the achievement of certain financial objectives, including de-levering the balance sheet, which will enable greater strategic investment in the company’s core businesses”.
UBP snaps up Société Générale’s UK and Swiss private banking subsidiaries in €900m deal
UBP lands two SocGen private banking businesses
Union Bancaire Privée (UBP), one of the largest private banks in Switzerland specialising in wealth and asset management, has agreed to purchase two of Société Générale’s international private banking subsidiaries for €900 million.
The sale of Société Générale Private Banking Suisse and its wealth management arm SG Kleinwort Hambros is expected to close by the end of Q1 2025.
UBP claims that the deal will increase its assets under management by CHF 25 billion (€26 billion), adding to the approximately CHF 150.8 billion (€161 billion) it currently manages.
For Société Générale, the sale is part of the execution of a “strategic roadmap targeting a streamlined, more synergetic and efficient business model, while strengthening the Group’s capital base”.
Scotiabank buys 14.9% stake in KeyCorp for $2.8bn
Canadian banking heavyweight Scotiabank has agreed to buy a 14.9% pro-forma ownership stake in KeyCorp, the parent of Ohio-based KeyBank, for a total cash consideration of $2.8 billion.
The two-phase investment will see Scotiabank snap up an initial 4.9% stake by Q4 2024, before acquiring the additional 10% stake next year.
Once finalised, Scotiabank will have the opportunity to appoint two members to KeyCorp’s board of directors: one senior Scotiabank executive and one third-party director.
The deal “significantly increases the capital deployed to our identified priority markets”, according to Scotiabank president and CEO Scott Thomson.
Arizona’s Transact Campus snapped up by Roper Technologies in $1.6bn deal
Transact Campus to merge with Roper’s CBORD business
Roper Technologies has agreed to acquire Transact Campus, a US-based provider of campus technology and payment solutions, from its majority owner, Reverence Capital Partners, for a net purchase price of $1.6 billion.
This total, which includes a $100 million tax benefit from the deal, reportedly represents approximately 14 times the projected operating profit for 2025.
Following the completion of the deal, expected this quarter, Roper will merge Transact into its CBORD business, which provides security, food service, nutrition, and campus commerce solutions.
The combined entity will operate under both the Transact and CBORD brands, with Transact’s CEO, Nancy Langer, heading the merged company and CBORD’s CEO, Dan Park, assuming the role of COO.
