Amsterdam based banking group ABN Amro (AMS:ABN) has announced that it has reached an agreement to acquire BUX, one of Europe’s most rapidly growing neobrokers. With this acquisition, ABN AMRO said it aims to strengthen its footprint in the retail investment space and substantially enhance its digital offering.

The parties did not disclose the price being paid for BUX.

BUX was founded in 2013 and is also based in Amsterdam. The company has grown to be one of Europe’s leading neobrokers with 500,000 clients, operating across eight markets, although BUX exited the lucrative UK retail trading market earlier this year.

BUX has also recently lost a number of senior executives from its Cyprus based CFDs brokerage operation, branded as Stryk, including Managing Director and Cyprus office head Jean-Raphael Nahas, who joined MENA focused broker Zara FX as COO. Apparently Stryk will be shut down as part of the acquisition. All Stryk accounts have been closed, and remaining balances are being refunded to Stryk account holders.

ABN Amro said that BUX brings advanced financial technology, a user-friendly and intuitive platform, and a brand that strongly resonates with the new generation of investors. The acquisition gives ABN AMRO and BUX a combined #1 position in the Netherlands for investors who want to start building their wealth. Acquiring BUX also contributes to ABN AMRO’s pan-European growth ambition.

Annerie Vreugdenhil, ABN AMRO’s Chief Commercial Officer Personal & Business Banking said:

“It’s a lot more common now for people to start thinking well ahead about their financial future and to take control of it themselves. Over the past few years, BUX has excelled in helping clients who want to do exactly this. Welcoming BUX into the ABN AMRO family will create a unique combination of innovative user-friendliness and financial strength, stability and expertise – a powerful foundation for future growth (in the private investment domain), both for our clients and for the bank itself.”

Yorick Naeff, CEO of BUX added:

“We’ve always had the ambition to be the leader in Europe’s retail investment arena, and joining forces with ABN AMRO is a crucial stride towards achieving this goal. We strongly believe that at BUX, our speed, agility, and relentless drive for innovation, merged with ABN AMRO’s deep expertise in personal finance and decades-long reputation, form a synergy unparalleled in the entire investment sector. This powerful combination positions BUX ideally to become a leading investment platform across Europe for everyone looking to grow their wealth for the future.”

The parties said that together BUX and ABN AMRO offer an attractive range of investment and savings products, both to new investors who want to explore the world of investments, and to more experienced clients with larger investment portfolios who are looking for expertise to help them achieve their goals. In this way, ABN AMRO aims to grow with its clients in every aspect of their life. This step is an additional growth investment for BUX, enabling ambitious long-term scaling and innovation, fortified by ABN AMRO’s vast resources and infrastructure. The acquisition does not encompass BUX’s cryptocurrency activities.

ABN AMRO and BUX are no strangers to each other. ABN AMRO’s venture arm, formerly known as ABN AMRO Ventures, was among the first companies to invest in BUX. Also, since 2019 BUX and ABN AMRO Clearing have enjoyed a successful partnership that links the bank’s technology to the BUX app. In 2022, BUX became the first broker in Europe to offer fractional European ETFs in partnership with ABN AMRO Clearing Bank. Together they built the technology that enables investors with smaller budgets to purchase parts of shares or ETFs.

The transaction is subject to approval by the regulator and is expected to be finalised in 2024. The transaction is estimated to have a minor impact on ABN Amro’s CET1 capital ratio.