FNG Exclusive… FNG has learned from certain sources that Dutch banking giant ABN Amro paid €68 million (USD $77 million), in cash, to acquire Amsterdam based neobroker BUX last year. The parties had not yet formally released the terms of the transaction to date.

BUX shareholders

Most of the investors in BUX (which included ABN Amro itself) apparently took a loss on the deal, as BUX had raised more than that amount in financing since its founding in 2013. In its last financing round alone in April 2021, BUX raised $80 million in a Series C raise led by Prosus Ventures and Tencent, at a valuation presumably several times that $80 million figure.

BUX purchase price

Regulatory filings indicate that of the €68 million BUX purchase price, ABN Amro assigned €44 million to Goodwill, attributable to future new business and client relationships, as well as to future improvements in operating efficiency and technology. ABN Amro recognized €9 million in net acquired assets, €21 million in intangible assets, and also picked up a €6 million deferred tax liability in the deal.

Reasons for BUX acquisition

In describing its rationale for acquiring BUX, ABN Amro indicated that the brand could provide a strong platform for growth, particularly among young, high-income retail investors in the Netherlands looking to build wealth. As part of the acquisition BUX was renamed BUX by ABN Amro, and the company plans to continue to operate BUX as a separate entity.

BUX

BUX was founded in 2013 and grew to be one of Europe’s leading neobrokers with 500,000+ clients, operating across eight markets. (Other than its home market in the Netherlands, BUX also has clients from Belgium, France, Germany, Spain, Italy, Austria and Ireland.) However after exiting the lucrative UK retail trading market, a failed CFDs brand launch (Stryk, out of Cyprus), and continuing losses, ABN Amro stepped in to acquire BUX, closing the acquisition in July 2024.