Private banking and wealth management group J. Safra Sarasin has reached an agreement to acquire a majority stake in fintech bank Saxo Bank.

The group announced it had signed a strategic acquisition to purchase a stake of approximately 70 per cent in Saxo Bank, which was previously held by Geely Financials Denmark A/S, a subsidiary of Zhejiang Geely Holding Group and Mandatum Group.

The transaction remains subject to standard regulatory and other approvals, including from the FINMA and DFSA.

Saxo Bank will continue to operate as a standalone entity, with its founder and CEO, Kim Fournais, remaining as CEO and retaining approximately 28 per cent ownership.

J. Safra Sarasin said the deal aimed to enhance the long-term potential of J. Safra Sarasin Group, which has client assets of $247bn, and Saxo Bank, which has $118bn in client assets.

Furthermore, the group stated the acquisition was in line with its “dedication” to building its platform of long-term value creation for its clients.

“Saxo Bank’s proven expertise in digital investments and trading platforms perfectly complements J. Safra Sarasin’s heritage of bespoke wealth and asset management solutions,” the group said in a statement.

“J. Safra Sarasin and Saxo Bank are united by shared values of excellence, stability, and client centricity. J. Safra Sarasin plans to integrate Saxo’s technology platform, establishing a new frontier in wealth management and setting a benchmark for innovation and client experience in the industry.”

With support from J. Safra Sarasin, Saxo Bank will seek to strengthen its partnerships with banks, corporates, family offices, asset managers, and independent wealth managers.

Commenting on the deal, J. Safra Sarasin Group chair, Jacob J. Safra, said: “This strategic acquisition represents a significant milestone for J. Safra Sarasin. It creates new opportunities for expansion and further increases our competitive edge, while reflecting our unwavering multi-generational commitment to entrepreneurship, sustainability and client success.

“The addition of a leading international fintech bank to our group further underscores our strong commitment to shaping the future of financial services, creating a robust forward-thinking powerhouse primed for long-term growth.”

Fournais added: “For Saxo, our employees, shareholders, clients, and partners, and me personally, today marks an inflection point. I have worked with an outstanding team, focusing on continuously improving Saxo for the mutual benefit of all our stakeholders, including clients and partners.

“Saxo proudly welcomes J. Safra Sarasin as new majority shareholder, a family-owned banking group with over 180-year heritage and long-term perspective. I feel great pride and comfort knowing that Saxo has found its ideal long-term partner.

“The win-win opportunities which our business models will create are unique, extending to our employees, clients, and partners. I am incredibly proud of and thankful to Geely and Mandatum for their invaluable support to Saxo since becoming shareholders in late 2018.

“As we welcome J. Safra Sarasin as our new shareholder, we remain committed to our mission of delivering best-in-class investing and trading platforms to get more curious people invested in the world.”

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