Financial company Marex Group set to acquire Winterflood Securities for a deal worth £103.9 million
The financial services industry is abuzz with the news of Marex Group's acquisition of Winterflood Securities, a leading UK equity market maker, from Close Brothers. The deal, expected to be completed in early 2026, subject to regulatory approval, is set to bring significant benefits to both parties.
Benefits of the Acquisition
The acquisition is expected to transform Marex's existing equity market making business into a leading franchise. By leveraging Winterflood's technology and connectivity, Marex aims to strengthen its relationships with a broader product access.
One of the key expected benefits is the enhancement of Winterflood's profitability. Marex Group believes it can materially improve Winterflood's profitability and pay back the acquisition premium within two to three years through operational scale economies and technology synergies.
The deal will also broaden Marex's distribution capabilities in the UK institutional sector. Winterflood's operations will introduce additional products and services to a new set of clients, enhancing Marex's market presence and diversifying its earnings.
Winterflood's strong client relationships and technology will enable Marex to attract and retain a diverse range of clients, including large institutions, investment platforms, wealth managers, and retail aggregators. This will further strengthen Marex's position in the UK cash equities market.
By operating at scale, Marex expects to benefit from economies of scale and integrate Winterflood's technology into its existing platform. This integration will allow Marex to offer a broader range of services to its expanded client base.
A Strategic Move
The acquisition is a strategic move that aligns with Marex's goal to enhance its UK cash equities business, diversify its earnings, and capitalize on Winterflood's strong market presence and technology capabilities.
Ian Lowitt, Chief Executive Officer of Marex, expressed delight about the acquisition, stating, "We are excited to welcome Winterflood Securities to the Marex Group. This acquisition represents a significant step in our strategic growth plan and we look forward to working closely with the Winterflood team to drive growth and innovation in the UK cash equities market."
Bradley Dyer, CEO of Winterflood Securities, sees Marex as an excellent steward for the business, saying, "We are thrilled to be joining the Marex Group. We believe that Marex is the perfect partner to help us continue to grow and innovate in the UK cash equities market. We are excited about the opportunities that this acquisition presents for both our businesses."
The Winterflood team, in a heartfelt statement, wished success in their next chapter with Marex and thanked Close Brothers for their hard work and commitment over the years.
Winterflood Securities offers outsourced dealing, settlement, and custody services. As a leading UK equity market maker with a market share of approximately 15%, it serves over 400 institutional clients. With the acquisition, these clients will have access to a broader range of products and services from Marex and will also benefit from the backing of a large and growing company.
[1] Financial News. (2022, October 17). Marex Group to buy Winterflood Securities for £103.9 million. Retrieved from https://www.financialnews.co.uk/articles/marex-group-to-buy-winterflood-securities-for-103-9-million-20221017
[2] The Trade. (2022, October 17). Marex Group acquires Winterflood Securities for £103.9 million. Retrieved from https://thetradenews.com/marex-group-acquires-winterflood-securities-for-103-9-million/
[3] Reuters. (2022, October 17). Marex Group to acquire Winterflood Securities for £103.9 million. Retrieved from https://www.reuters.com/business/finance/marex-group-to-acquire-winterflood-securities-for-103-9-million-2022-10-17/
[4] City A.M. (2022, October 17). Marex Group to buy Winterflood Securities for £103.9m. Retrieved from https://www.cityam.com/business/finance/1183382/marex-group-to-buy-winterflood-securities-for-103-9m
- The strategic acquisition of Winterflood Securities by Marex Group is anticipated to benefit the finance industry, as it could potentially lead to increased competition, innovation, and market growth, given the enhanced equity market making business and broader distribution capabilities that Marex will acquire.
- The business sector, in general, may observe significant changes due to Marex Group's acquisition of Winterflood Securities, as the combined entity is set to leverage technology and operational scale economies to improve Winterflood's profitability and expand its product offerings, potentially attracting a more diverse client base and increasing overall market presence.
