FCA regulated emerging markets focused broker Sova Capital has announced that it has entered into an agreement to acquire the banking business of Posojilnica Bank eGen (Poso Bank) in Austria.

The acquisition of an Austrian credit institution will give Sova Capital a direct presence in the European Union, giving London based Sova Capital and its clients additional flexibility in the post-Brexit era. Poso Bank is a fully regulated credit institution headquartered in Klagenfurt am Wörthersee, Austria. As of year-end 2019, the bank had total assets of €462 million.

Sova said that it plans to expand its business lines following the transaction, which adds commercial and retail banking to the firm’s capabilities in independent investment research, securities trading, electronic and high-touch execution, public capital markets financing, and prime brokerage services.

Sergey Sukhanov, Chief Executive Officer of Sova Capital stated:

“This acquisition is a small but significant step toward achieving our long-term strategic vision of becoming a one-stop financial services provider, offering a full range of financial services. The acquisition also expands our presence in the EU following Brexit, opening up new opportunities for the firm and our clients at a critical time.”

“We welcome our new colleagues in Austria to the Sova team, and look forward to working together to expand the Poso business and capture synergies with Sova’s existing financial services capabilities.”

Poso Bank is a member of the Raiffeisen Banking Group of cooperative banks in Austria. The transaction is expected to close by the first quarter of 2021 following approval by the Austrian regulatory authority, the Federal Markets Authority (FMA).

Sova Capital is an FCA authorised and regulated broker based in London. The firm offers institutional and corporate clients a full range of investment brokerage services, including independent research, securities trading, electronic and high-touch execution, and public capital markets financing. The company is controlled by Russian billionaire Roman Avdeev.