Sumary of Davy assets to be sold for up to €605m in three deals:
- Bank of Ireland confirmed on Thursday that it has it has reached a deal to buy Davy’s core capital markets and wealth management businesses for an enterprise value of €440 million, with the possibility of up to €40 million of further payments from 2025, subject to the performance of the business.
- A large portion of this will come from the agreed sale, also announced on Thursday, of Davy Global Fund Management (DGFM), the company’s fund servicing and fund management arm, to Luxembourg-based peer IQ-EQ.
- Sources had previously told The Irish Times that this part of the business was worth more than €70 million.
- The cash pile will also include €19 million that Davy is set to receive from the separate sale of its 63 per cent stake in Rize ETF, a UK-based exchange traded funds business.
- McKiernan biggest beneficiaryDavy’s former chief executive, Brian McKiernan, who resigned in March as it emerged he was part of the so-called Davy 16, will be the biggest beneficiary from the much-higher-than-expected proceeds from the sale of the firm’s assets.
- Four other former senior figures who were key players in the Davy 16 trade – one-time chief executive Tony Garry;
- More than a third of the business is in the hands of about 700 of Davy’s 800-strong workforce, according to sources.