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DAVY GROUP

Davy to be acquired by long-term strategic owners

  

Bernard Byrne Interim CEO of Davy

Bernard Byrne
Interim CEO of Davy

Davy sale announcement

We are pleased to announce three agreements that will see Davy businesses being acquired by long-term strategic owners.

The agreements, which remain subject to regulatory and other customary approvals, will see Bank of Ireland acquire our Wealth Management, Capital Markets and associated businesses. Our funds business, Davy Global Fund Management (DGFM), will be acquired by IQ-EQ, while our shareholding in Rize ETF, our UK ETF business, will be acquired by AssetCo.

We believe this is a very positive outcome and one that presents significant opportunities for all stakeholders, particularly for our clients, in supporting their growth ambitions.

I want to thank our clients, colleagues and all who contributed to building this strong franchise over many years. Bank of Ireland will bring a mix of continuity and new opportunities for our wealth management and capital markets clients and people. I am also pleased that Bank of Ireland has chosen to retain the Davy brand and structure.

The Management Team in DGFM believe they have an outstanding partner in IQ-EQ as both businesses share the same relentless focus on doing the absolute best for both their clients and their people. I am confident of the positive outlook that lies ahead for clients and staff of its enlarged business.

Following these agreements, our immediate focus will be to engage directly with our key stakeholders as we navigate the path to deal completion. In the interim, I wish to thank most sincerely all my colleagues in Davy for their hard work and commitment which has resulted in our current trading to mid-year being ahead of the prior comparable period, a significant achievement given the other workstreams underway across our Group over recent months.

Davy sale announcements

J & E Davy is pleased to announce three agreements that will see Davy businesses being acquired by long-term strategic owners, presenting significant opportunities for our clients and our people.

Agreement has been reached to sell Davy’s Wealth Management, Capital Markets and associated businesses to Bank of Ireland Group (the “Bank of Ireland Transaction”), for a total enterprise value of €440 million, in addition to cash and working capital adjustments at transaction close.

These agreements have been endorsed by the J & E Davy Holdings Board as being in the best interests of all stakeholders and follow a decision on 11th March 2021 to pursue a sale of Davy.

On completion, J & E Davy operations (excluding Davy Global Fund Management (DGFM) and Rize ETF) will become part of Bank of Ireland Group. Davy will join Bank of Ireland Group, retaining the Davy brand and structure.

Subject to regulatory approvals and customary conditions, the Bank of Ireland Transaction is expected to close in 2022.

The agreement with Bank of Ireland is intended to build on Davy’s leadership position in Wealth Management and Capital Markets, to extend Davy’s services to Bank of Ireland customers, and to provide an enhanced range of services to Davy’s existing clients. It will also see Davy benefit from Bank of Ireland’s scale and resources to facilitate sustainable growth. In addition, we see a continuation of the Davy brand and structure, under the Bank of Ireland umbrella.

In line with our commitment to publish the findings of the A&M review, our Chairman, John Corrigan, has published an update which includes a summary of their report finalised on 21 July 2021. You can read this update here.

Davy is pleased to announce it has entered into a separate agreement to sell Davy Global Fund Management (DGFM) to IQ-EQ, for an undisclosed sum. Subject to regulatory approvals the DGFM Transaction is expected to close in advance of the Bank of Ireland Transaction. There are currently 83 people working in the DGFM team.

Davy is also pleased that AssetCo will acquire Davy Group’s shareholding in the UK based Rize ETF for £16.5m (approximately €19 million).

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Service continuity

Yes. We will continue to operate under the Davy brand and there will be no changes to your service relationship.

Yes, you will continue to work with the same team in Davy. There is no change to your usual point of contact.

We will retain our presence in Dawson Street and our regional offices in Cork, Galway, Belfast and London.

We are pleased that Bank of Ireland has chosen to retain the Davy brand, reflecting its support for our growth agenda and vision for the business.

No. We anticipate little or no disruption as part of the integration process and do not expect that you will need to take any action as a result of the sale.

We will keep our clients and people updated throughout the finalisation of the sale. Your client Adviser will be in regular contact with you and we will keep our website up to date with the most recent information as it becomes available.

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