AMSTERDAM: Allfunds Group plc (Allfunds), one of the world’s leading B2B WealthTech platforms for the fund industry, and Iccrea Banca, the parent company of Gruppo BCC Iccrea, the largest Italian cooperative banking group, have signed a Memorandum of Understanding by which Allfunds will acquire Iccrea Banca’s local paying agent business, with a related exclusivity agreement.
The local paying agent business (Banca Corrispondente e Banca Agente) provides services to fund houses and distributors in Italy, such as settlement, custody, reporting and tax compliance. Allfunds will build upon its position in this segment to better serve customers, while strengthening the partnership with an important financial institution in the country.
The transaction will be Adj. EBITDA margin and EPS accretive for Allfunds from year 1 and will have a neutral impact on Allfunds Banking Group’s liquidity position, as the acquisition will be fully funded through the Allfunds Group revolving credit facility.
Juan Alcaraz, Allfunds’ founder and CEO, said: “I am very pleased that we have entered this agreement with Iccrea Banca, parent company of BCC Iccrea Group, one of the leading players in the Italian banking sector. Being one of our core markets, in which we have been present since 2003, this transaction will contribute to our ambition to remain the top choice for any Italian institution in the WealthTech segment, by providing cutting-edge and comprehensive solutions for our clients. Our integrated offering will certainly help Iccrea to deliver superior added value to their clients.”
Mauro Pastore, General Manager of the BCC Iccrea Group added: “This agreement is part of the BCC Iccrea Group’s strategy aimed at supporting development projects in the area of asset management, which correspondent banking is closely related to, and at improving the level of services related to access to financial markets provided to our BCCs and their customers. This transaction will allow us to capitalise on the value of these assets and to further increase our solid capital ratios.”
The transaction is expected to be signed before the end of 3Q2023 and closed before the end of the year, subject to customary closing conditions. Further terms of the transaction were not disclosed.
