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Ebury is a trade and foreign exchange facilitator for small and
medium-sized companies which operates in 19 countries and 140
currencies, Santander said in a statement.
Santander said it is acquiring 50.1% of Ebury for 350 million
pounds, of which 70 million will be new primary equity to
support Ebury's plans to enter new markets in Latin America and
Asia.
The bank said it expects a return on invested capital (RoIC)
higher than 25% in 2024.
"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," said Santander executive chairman Ana Botin.
Like banks across Europe, Spanish lenders have turned to more
profitable enterprise lending in a bid to lift earnings as low
interest rates squeeze financial margins.
Santander is also focusing on emerging economies while cutting
costs to counter squeezed margins from ultra-low interest rates
in mature European markets.
Santander said Ebury's existing investors, including co-founders
and management, would reinvest in the transaction and the
current management team will remain.
Ebury has generated average annual revenue growth of 40% in the
last three years, Santander said in its statement.
(Reporting By Jesús Aguado; editing by Jason Neely)
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