IRISH STOCKBROKER Merrion Capital is set to change hands for the second time in three years.

Icelandic financial group Landsbanki Islands announced yesterday that it had agreed to sell its 84 per cent stake in the Ballsbridge-based broker to compatriot Straumur-Burdaras Investment Bank as part of a €380 million sale of assets. The sale includes Landsbanki Securities UK Ltd and Landsbanki Kepler, a European investment bank.

It is not clear what value was attached to Merrion as part of the sale, but the Irish group is believed to have accounted for the majority of the profits earned last year by the three Landsbanki entities.

In a statement, Merrion said it would continue to be managed by its Irish founders. The broker employs about 100 staff here.

Merrion chief executive John Conroy welcomed the deal. "Our model has been very successful and they [Straumur] want us to continue to drive the business on," he told The Irish Times.

Straumur will employ 1,200 people in 18 countries when the deal is completed. It has total assets of €6.2 billion and an equity base of €1.5 billion. The group's chairman and largest shareholder is Thor Bjorgolfsson, one of Europe's most successful entrepreneurs.

Merrion was sold to Landsbanki in November 2005 in a deal that involved an upfront payment and three additional payouts based on certain performance targets being met. In August, it emerged that Landsbanki paid €41 million earlier this year for an additional 17 per cent stake in Merrion Landsbanki. This brought its total investment in the Irish stockbroker up to almost €90 million for an 84 per cent share.

An additional payment of about €20 million is due next March for the remaining 16 per cent of the company.

Merrion's business has grown substantially over the past three years. In 2005, it recorded profits of €8 million. This trebled the following year and increased again in 2007 to €25.5 million.

Merrion's value is thought to be substantially in excess of the price agreed with Landsbanki in 2005.

Merrion recently acquired Oppenheim Investment Managers.