EVLI BANK PLC STOCK EXCHANGE RELEASE MAY 31, 2016, AT 2:10 PM
Evli Bank Plc to acquire the entire share capital of Evli Alexander Management Oy
Evli Bank Plc, Alexander Group Oy and PPs Ventures Oy have today signed an agreement according to which Evli will purchase the remainder of the joint venture in which it previously had 45% ownership. This transaction will make Evli Alexander Management a wholly-owned subsidiary of Evli. The transaction price, paid in cash, will be EUR 6.6 million.
Evli Alexander Management Oy, which was established in 2007, is the country's leading producer of administration services for listed companies that use share-based incentive programs. Several thousand people in Finland are covered by incentive programs.
"This is an important form of business for Evli and has the potential to create long-term growth. Incentive programs also create new assets and therefore new asset management and investor clients in the entrepreneur and corporate executive segments, which are important for Evli. The administration of incentive programs is excellently suited for our strategy, as it is contract-based. The goal of our strategy is to increase the proportion of revenue made up by recurring income," says Maunu Lehtimäki, CEO of Evli Bank.
After the transaction, Evli Alexander Management will continue to serve its customers as before. The company's current executives are committed to continuing their work in the company, in developing operations and increasing their ownership of company shares. Pertti Helaniemi will continue as the company's Managing Director.
"The transaction will make our cooperation with Evli even closer, which is a very good thing for clients. We will now be able to offer our clients a seamless and comprehensive client experience in all stages of the service chain. We will be able to meet customer needs even better, especially in digital services, as we will be able to use Evli's strong expertise in online investment and asset management services in the development of our services," says Pertti Helaniemi.
Evli Alexander Management will continue to work with Alexander Incentives Oy (part of Alexander Group Oy), the country's leading designer of incentive programs.
"Alexander Incentives provides remuneration advisory services and designs incentive programs. Evli Alexander Management offers incentive program administration services. The close cooperation of the leading companies in these sectors is the perfect way to significantly increase the quality of the services offered by the companies. Therefore the cooperation between these companies, which has lasted almost 10 years, will continue despite the share transaction," says Yrjö Kopra, CEO of Alexander Group Oy.
Evli Alexander Management Oy's revenue in 2015 was about EUR 3.5 million and its operating profit was about EUR 1 million.
The transaction will not have a significant impact on Evli Bank Plc's income statement or earnings per share.
Additional information:
Maunu Lehtimäki, CEO, Evli Bank Plc, tel. +358 (0)9 4766 9304
Pertti Helaniemi, Managing Director, Evli Alexander Management Oy, tel. +358 (0)9 4766 9421
Evli Bank Plc in brief
Evli is a genuine private bank specializing in investment that helps private persons and institutions increase their wealth. The company offers asset management services, capital markets related services, such as brokerage of equities and other instruments, market making, investment research and a full range of Corporate Finance services.
Distribution: Nasdaq Helsinki Ltd, main media, www.evli.com