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8th November 2019
Santander invests in Ebury to strengthen its Global Trade Services
Banco Santander has made a strategic investment in Ebury, the trade and foreign exchange facilitator for SMEs. The investment will strengthen its Global Trade Services offer.
Ebury, which operates in 19 countries and 140 currencies, has generated consistent average annual revenue growth of 40 per cent in the last three years. UK-based Ebury operates on a worldwide distribution platform underpinned by a data-driven business model and offers customer experience and product capabilities.
Under the terms of the transaction, Santander will acquire 50.1 per cent of Ebury for £350m, of which £70m will be new primary equity to support Ebury’s plans to enter new markets in Latin America and Asia. The bank expects a return on invested capital higher than 25 per cent in 2024. Ebury’s existing investors, including co-founders and management, will reinvest in the transaction and the current management team will remain leading Ebury’s expansion.
Ana Botín, Group Executive Chairman of Banco Santander, said: “Small and medium-sized businesses are a major engine of growth around the world, creating new jobs and contributing up to 60 per cent of total employment and up to 40 per cent of national GDP in emerging economies.
"SMEs are becoming increasingly global and Santander is the best positioned bank to play a leading role to help them access global trade finance. By partnering with Ebury, Santander will deliver faster and more efficient products and services for SMEs, previously only accessible to larger corporates.”
Juan Lobato and Salvador García, co-founders of Ebury, said: “Combining a big bank with nimble Fintech means we can offer our clients the best of both worlds: they can benefit from our technology and high-quality service safe in the knowledge that they are counterparty to one of the world most important financial institutions.
"It is an exciting time for Ebury, we have just completed our first acquisition, and the new capital from Santander and our existing shareholders will allow us to invest in new ways to serve SMEs trading internationally and continue the growth in our business while keeping our entrepreneurial culture.”
Ebury will continue operating as an independent unit, supported by Santander following its extensive experience in leveraging its Group scale to grow and develop the companies it has invested in.