CACEIS Investor Services agreed to acquire Dutch custodian KAS Bank in an all-cash public offer of €188 million ($212 million) or €12.75 per share, the French custodian bank said in a joint statement.
In an effort to boost its European asset-servicing business by adding KAS Bank's €197 billion in assets under custody, CACEIS proposed 110% over the closing price of KAS on Feb. 22. The deal is expected to close in the third quarter, subject to approvals from Dutch central bank De Nederlandsche Bank and the European Central Bank.
CACEIS, which had €2.6 trillion in assets under custody and €1.7 trillion in assets under administration as of Dec. 31, will finance the transaction from its own funds.
"Our Dutch, German and U.K. clients will benefit from the critical size with more than €2.8 trillion assets under custody, the solid capital position and the extended product range this combination will bring," said Sikko van Katwijk, chairman of KAS' managing board, in the statement.
CACEIS CEO Jean-Francois Abadie said in the statement: "With the announcement today, we significantly upgrade our position in the Dutch market. In addition, CACEIS will further strengthen its expertise in servicing institutional investors such as pension funds and insurance companies, in order to distribute these services on a global basis."
KAS Bank was advised by Rabobank and law firm Stibbe. Credit Agricole Corporate and Investment Bank and law firm Clifford Chance advised CACEIS.