Saxo Bank Lands in Steady Hands
Speculation about a takeover of the technology-driven Saxo Bank by the Swiss private bank J. Safra Sarasin dates back to February this year. On Monday, J. Safra Sarasin Group confirmed that it is acquiring a majority stake in the Danish bank, as reported by finews.asia.
According to a joint media release, J. Safra Sarasin is acquiring around 70 percent of the shares from the two previous shareholders, Geely Financials Denmark – a subsidiary of the Zhejiang Geely Holding Group – and the Mandatum Group.
Saxo Founder Remains on Top
Kim Fournais, founder of Saxo Bank, will remain in office as CEO and retain his 28 percent share of the stocks. Saxo Bank is therefore expected to continue operating as an independent entity in the market.
The recognized expertise of Saxo Bank in the area of digital assets and trading platforms perfectly complements J. Safra Sarasin’s tradition of tailored wealth management solutions, the statement said. J. Safra Sarasin plans to integrate Saxo Bank’s technology platform «to set a new benchmark for innovation and customer experience in the industry.»
Expansion of BaaS Segment
Saxo Bank emphasizes the financial stability, global presence, and expertise of the new parent company in the area of sustainability. This enables it to expand its offering and accelerate its «mission» to provide customers and partners with innovative platforms and services.
With the support of J. Safra Sarasin, Saxo will also expand its proven long-term banking-as-a-service partnerships (BaaS) with banks, companies, family offices, asset managers, and independent wealth managers within its institutional customer segment.
Jacob J. Safra, president of the group, commented on the transaction as follows: «The addition of a leading international fintech bank to our group underlines our commitment to shaping the future of financial services. With this, we are creating a robust, forward-looking powerhouse that is poised for long-term growth.»
«Thoughtful And Strategic Acquisition»
J. Safra Safra’s CEO Daniel Belfer, in turn, underlined that the takeover confirms the commitment to «thoughtful, strategic acquisitions.»
J. Safra Sarasin Bank manages customer assets of $247 billion and employs 2,550 staff, while the also active-in-Switzerland Saxo Bank brings $118 billion and 2,300 employees.
Big Catch Outside the Usual Hunting Grounds
Saxo Bank had been mentioned as an acquisition candidate for months. Now it appears to have landed in steady and strong hands. One challenge is likely to be dealing with the different corporate cultures.
Saxo Bank is considered rather extroverted, for example, when it publishes its annual «Outrageous Predictions» on the economy and financial markets. J. Safra Sarasin Bank, on the other hand, adheres to the well-known discretion of the private banking world.
The acquisition of the Danish bank is also a big catch for the Swiss private bank. With this transaction, it gains weight outside the usual industry hunting grounds. The fact that Saxo Bank (at least for now) continues to operate independently should at least help limit the integration efforts.
