Deutsche Buys Broker to Expand UK Advisory Services
(28 April 2023 - United Kingdom) Deutsche Bank has agreed to buy UK broker Numis for £410mn in a surprise deal as Germany’s biggest bank bets on a revival for a London market that has struggled in recent years.
Numis, a broker and investment bank, advises almost a fifth of companies in the FTSE 350 index on everything from equity raisings to acquisitions.
The purchase comes as the UK market suffers a steep decline in initial public offerings and equity raisings that are the lifeblood of firms like Numis.
As part of the deal, Deutsche will combine and co-brand its 35-person UK and Ireland corporate finance team with Numis, which has 166 corporate clients in the UK and 332 staff, spread across trading, research and capital markets.
“We have been evaluating how to accelerate the growth of our business in the UK and Numis represents a compelling strategic fit,” said Fabrizio Campelli, head of Deutsche’s investment bank.
Deutsche sees it as an opportunity to push further into Europe’s largest market for investment banking fees. It also intends to expand its business by offering Numis’s clients a broader array of services, including across international markets.
But Deutsche was forced to defend a transaction that appeared to reverse its retreat from equities trading. In 2019, the bank closed its equity trading business in the UK as part of a radical overhaul that saw it slash 18,000 jobs and shrink its assets by €74bn.