So far, this has been grown organically. But this week, the bank announced its first major acquisition with the purchase of Synthesis Bank.
I went off on a bit of a jolly down to Geneva to listen to the rationale behind the deal. On the surface, the acquisition is relatively small. Saxo declined to put a precise value on it, saying that Synthesis’ former owners will now hold 6.7% of the combined company and that there was also a cash component. However, Saxo’s management were naturally upbeat about it, saying it will form a key plank of their future strategy. Lars Christensen, Saxo’s other founder and chief executive, says that in some ways the takeover is a test to see if the company’s management can grow it through acquisition as well.
Synthesis has been a long-term partner of Saxo and it has a good foothold in the wealth management business. This currently accounts for around 10% of the now-enlarged Saxo’s business, and it is seen as one that offers real potential – for which a Swiss banking license is seen as vital; perhaps another factor in the deal. Charles-Henri Sabet, who formed Synthesis, will now take a role in Saxo’s senior executive management with responsibility for global trading.