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"The
total consideration is approximately 68 million euros, assuming
25 million euros of regulatory capital is transferred as part of
the transaction. Total restructuring and integration costs are
expected to amount to approximately 20 million euros," it added
in a statement.
The deal was set to close in mid-2016 and would be accretive to
adjusted earnings immediately following closing, Baer said.
Julius Baer's Luxembourg-based business will manage total assets
of around 5 billion Swiss francs ($5.05 billion) on a pro-forma
basis once the deal goes through.
Julius Baer Chief Executive Boris Collardi said buying a fully
licensed bank in Luxembourg with its Temenos-based booking
center and related IT expertise provided strategic flexibility
for Baer's European businesses.
"Furthermore, it strengthens the implementation of our global
banking platform project by aligning Europe with our Swiss and
Asian platform strategy, thus reducing the execution risk," he
added.
Julius Baer this year selected software group Temenos <TEMN.S>
as its partner for planning its core banking platform renewal
project.
Gustav Holtkemper, chairman of Commerzbank International SA
Luxembourg (CISAL), called Baer a good partner for its clients
and staff.
"Since 2009 we have been gradually bundling our competences in
international wealth management in Germany. In the framework of
this strategic orientation we have decided to sell our
activities in Luxembourg," he said.
(Reporting by Michael Shields in Zurich, Additional reporting by
Maria Sheahan in Frankfurt; Editing by Stephen Coates and Biju
Dwarakanath)
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