Barclays Bank Plc, Britain's third largest bank, today said it will buy the banking operations of global asset manager Standard Life Plc, for £226 million in cash, to expand its UK savings and mortgage operations.
Under the terms, Barclays will gain deposits worth approximately £5.5 billion through Standard Life Bank's 287,000 savings accounts, and a mortgage book of outstanding balances of approximately £8.8 billion in 78,000 mortgage accounts, with an average indexed loan to value ratio of 48 per cent, as at the end of June 2009.
The price-tag is based on an estimated tangible net book value of £293 million, subject to adjustments. Standard Life Bank reported a profit before tax of £15 million for the half year ended June 2009.
The transaction is expected to close in the first quarter of 2010, subject to customary and regulatory approvals.
About 270 Standard Life Bank employees will be transferred to Barclays as part of the deal.
London-based Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services, with extensive presence in Europe, US, Africa and Asia, operating in 50 countries and employing over 145,000 people.