Santander takes over the majority stake in UK based Ebury for EUR 400 million 

Santander takes over the majority stake in UK based Ebury for EUR 400 million

(PRESS RELEASE) MADRID, 5-Nov-2019 — /EuropaWire/ — UK based Ebury, which is the best-in-class trade and foreign exchange facilitator for small and medium-sized companies has received €400 million (~£350 million) strategic investment from Banco Santander. Santander’s investment in Ebury will help the company grow beyond the 19 countries it already operates in. On the other side the funding falls under Santander’s digital strategy of accelerating growth through new ventures and helps the bank strengthen its Global Trade Services offer and further consolidates Santander’s position as the bank of choice for SMEs trading across Europe and the Americas. Ebury has posted an average annual revenue growth of 40% over the past three years and trades in 140 currencies having transacted nearly EUR €21 billion  (~$23 billion) over the past 12 months alone.

Ebury’s unique distribution platform relies on data driven business model and offers best-in-class customer experience and product capabilities. Santander sees great synergy in the current partnership with Ebury as it serves some 4 million SME clients worldwide, of which more than 200,000 do international business. Ebury, on the other side, will improve its value proposition, supported by a leading financial institution.

According to the deal’s terms, Santander will pay over EUR 400 million (£350 million) for 50.1% of Ebury. Approximately €80 million (~ £70 million) of the investment will be primary equity. The financing will support Ebury’s plans to enter new markets in Latin America and Asia. The expected RoIC (return on invested capital), according to Santander, is going to be higher than 25% in 2024. Ebury’s current management will stay on to lead the company’s expansion while existing investors, including co-founders and management, will reinvest in the transaction.

Commending on the acquisition, Ana Botín, Group Executive Chairman of Banco Santander, said:

“Small and medium-sized businesses are a major engine of growth around the world, creating new jobs and contributing up to 60% of total employment and up to 40% of national GDP in emerging economies. SMEs are becoming increasingly global and Santander is the best positioned bank to play a leading role to help them access global trade finance. By partnering with Ebury, Santander will deliver faster and more efficient products and services for SMEs, previously only accessible to larger corporates.”

Commenting on the funding, Juan Lobato and Salvador García, co-founders of Ebury, said:

“Combining a big bank with nimble fintech means we can offer our clients the best of both worlds: they can benefit from our technology and high-quality service safe in the knowledge that they are counterparty to one of the world most important financial institutions. It is an exciting time for Ebury, we have just completed our first acquisition, and the new capital from Santander and our existing shareholders will allow us to invest in new ways to serve SMEs trading internationally and continue the growth in our business while keeping our entrepreneurial culture.”

Ebury is active in the foreign exchange and international payments services markets operating from 22 offices in 19 countries. Since 2009, the company has raised more than $134 million and currently employs some 900 staff boasting more than 43,000 clients, from SMEs and mid-corporates to banking partners and non-banking financial institution partners.

As part of the deal, Ebury will be able to rely on Santander’s capabilities, brand and correspondent bank network to establish new bank partnerships while Santander will take further advantage of the growth opportunity in SMEs cross-border transactions.

Following the investment, the new chairman of the Ebury’s board will be Sergio Rial, Santander Brasil’s CEO and executive sponsor of Santander’s Global Trade Services business. Sergio will be working closely with the existing Ebury team, led by Juan Lobato and Salvador García.

While Ebury will continue operating as an independent unit,  it will be supported by Santander’s extensive experience in leveraging its Group scale to grow and develop the companies it has invested in. Such a great example is Getnet, its subsidiary in Brazil. Already quite successful in Brazil, Getnet is helping build the Global Merchant Services platform, initially starting in Mexico before expanding across Latin America and Europe. As of today, Santander is working with some 1.2 million merchants worldwide generating turnover of €150 billion, which makes the bank a top 10 global acquirer in the world by volume.

Santander offers SMEs greater options to facilitate their growth and internationalization. Recently, Santander together with other international banks have officially launched the Trade Club Alliance, which a unique global network of banks aiming at making international trade simpler with an innovative digital platform.

Founded in 1857, Banco Santander is currently the largest bank in the euro zone by market capitalization significantly presented in 10 core markets across Europe and the Americas.

As of today, end of Spetember 2019, Banco Santander has EUR 1.04 trillion in customer funds, 144 million customers, of which 21 million are loyal and 36.2 million are digital (51% of active customers), 12,700 branches and 200,000 employees. The bank reported underlying profit of EUR 6,180 million in the first nine months of 2019, an increase of 2% compared to the same period the previous year.

Media contacts:

Banco Santander

comunicacion@gruposantander.com

+34 91 2895211

Ebury

Sam Livingstone
saml@templebaradvisory.com

William Barker
williamb@templebaradvisory.com

+44 (0)20 7975 1415

SOURCE: Santander