Milan-headquartered Mediobanca is to buy independent financial advisory group Arma Partners, which provides independent corporate finance advice to companies and private equity funds.
London-based Arma Partners has offices in Munich, a presence in the US, and affiliate relationships with specialist advisory firms in Japan, Australia, Israel, Turkey and Brazil.
In a statement on 18 May, Mediobanca said it will pay the purchase price in cash of which 40% at closing will be in available funds, with the remainder being released over four years based partly on Arma's performance. The firm will have the option to pay the deferred component in Mediobanca shares.
The purchase, subject to regulatory approval, will affect Mediobanca's Common Equity Tier 1 ratio of an estimated 30 basis points on a 100 per cent basis, should the deferred price be released in Mediobanca shares. Based on the last financial year earnings, the transaction is EPS accretive.
Arma Partners is led by its founder and managing partner Paul-Noël Guély. The firm has 12 partners and 86 employees, of which 69 are bankers hailing from 26 countries. It is particularly active in the software, cloud services, data, internet and fintech segments.
Over the last five years, the Arma Partners team has advised on more than 100 completed transactions with an aggregate value of more than $85bn.
Mediobanca said its Arma Partners deal will boost its advisory capabilities, adding a technology practice to beneftit its clients within corporate, investment banking and wealth management.
The deal would also align with its aim to be a "capital-lighter" corporate and investment bank (CIB).
Arma Partners will continue to be managed as an independent company within Mediobanca Group by Paul-Noël Guély who will work with Francisco Bachiller and Giuseppe Baldelli, co-heads of the global CIB.
Alberto Nagel, CEO of Mediobanca, said: "The agreement with Arma Partners reflects our ambition to build solid long-term growth leveraging industry trends, core competencies and human talent."
