RBC Acquires Abacus Financial Services

by Amanda Banks, Tax-News.com, London

01 December 2005

Royal Bank of Canada has agreed to acquire Abacus Financial Services Group, based in London, Jersey, Guernsey, Edinburgh, Cheltenham and Amsterdam, bringing an additional $41 bn of assets to the group. The terms of the transaction were not disclosed.

The transaction has been approved by Abacus shareholders and all relevant regulators. The Parties say they have begun working toward seamlessly integrating the operations of the companies with an immediate focus on creating value for our
clients and our shareholders.

"Abacus' talent, expertise and reputation for client service makes this an excellent fit on strategic, cultural and economic factors," said Michael Lagopoulos, President and CEO, Global Private Banking, RBC. The acquisition is expected to be virtually neutral to RBC earnings in 2006 and slightly accretive in 2007.

The deal provides RBC's Global Private Banking business with a greater presence in the British Isles with a total of more than 1,200 employees. Around the world, RBC's Global Private Banking business says it has a total of 30 offices in 21 countries with almost 2,000 employees serving the wealth management needs of international high net worth individuals and select institutional clients.

Paul Patterson, head of Global Private Banking for RBC in the British Isles, will oversee the integration of the combined group. Huw Bolle-Jones, the Group Chief Executive of Abacus, will take responsibility for the merged British Isles trust and fiduciary services of the combined private client businesses.

RBC has had operations in the British Isles since 1910. "Our focus in this critical market is to grow our business through the delivery of team-based wealth management solutions, broadening relationships with our existing clients and expanding our sales teams and client base," Patterson said. "As two leading organizations, Abacus and RBC will combine their best practices, knowledge, and expertise to form an innovative and client-oriented organization."

Abacus was established in 1967, originally as part of the Channel Islands firm of Coopers & Lybrand. Abacus became an independent member of Coopers & Lybrand International in 1994 following a management buy-out by the fiduciary
and wealth management services partners. The firm became wholly independent in 1998 following the merger between Coopers & Lybrand and Price Waterhouse.

"RBC's acquisition of Abacus will provide Abacus clients with access to the services and strength of a full service global financial institution combined with a full range of wealth management solutions, including banking, investment management, investment advisory and custody," Bolle-Jones said.

Recommended