Davy buys unit of rival Bloxham

IRELAND’S BIGGEST stockbroker, Davy, yesterday agreed to acquire the private clients division of local rival Bloxham.

No consideration was disclosed but it is believed to be between €5 million and €10 million.

A significant amount of this will involve a cash payment upfront with additional earn-out payments by Davy if certain targets are met.

Bloxham’s private clients arm has revenue of about €6.5 million annually and assets under management of €540 million. It was trading profitably.

The deal will involve the transfer of 27 Bloxham staff in Dublin, Cork and Limerick to Davy. The transfer of the business is slated for May 11th.

It is understood that Paddy Finnegan, who led the division, will remain with Bloxham.

About 15,000 of Bloxham’s private clients could now potentially transfer to Davy.

Brian McKiernan, head of Davy Private Clients, said the company was “pleased” to have acquired a “quality business” 150 years in existence.

Bloxham managing partner Pramit Ghose said the decision to sell the private clients division followed a strategic review of its business. “We have decided to focus on our asset management, institutional bond and institutional equity businesses,” he said.

“We are very grateful to our clients for their support and trust over many years. Consequently we have been highly selective in choosing a firm that has the requisite financial and regulatory resources and infrastructure to meet the evolving needs of clients.”

Staff in both brokers were briefed about the deal yesterday.