Bankinter buys EVO Banco and its Irish arm to US fund Apollo
Spain’s Bankinter is set to buy the banking operations of EVO Banco in Spain and its consumer credit affiliate in Ireland, AvantCard.
The Spanish bank has announced it has reached an agreement with Smart Holdco, an entity owned by the US fund Apollo, EVO Banco’s owner. The deal does not include the acquisition of EVO Finance, the group’s financial arm in Spain.
The deal is still pending of regulatory approvals and its terms have not been yet disclosed, as the final price will be determined based on the number of clients and transferred balances and any excess capital once the deal is closed.
The deal focuses on digital banking and consumer finance, two businesses that Bankinter considers strategic, and on two different countries, Spain and Ireland, an expansion that allows Bankinter to diversify geographically its credit risk.
Through the operation, Bankinter aims at increasing its commitment to digital banking, leveraging EVO’s brand value and the high growth potential of its customer base in order to increase its market share in digital banking entirely in conjunction with its current operations.
Acquiring AvantCard will bring Bankinter an entity specialised in consumer lending and technologically advanced while AvantCard will benefit from the experience and know-how acquired by Bankinter Consumer Finance – the bank’s consumer lending subsidiary – through its operations in Spain and Portugal.
EVO Banco has 456,000 digital customers, 229 employees and a balance of some €3bn in deposits and €800m in mortgages.
The credit entity Avantcard Ireland Limited, a consumer finance leader in Ireland, has 151,000 customers, 145 employees, €280m in ‘revolving’ card and deferred payment receivables, and €66m in personal loans.