Dublin stockbrokers Merrion Capital has been sold to Icelandic bank Landsbanki for an estimated €55 million based on an initial payment of €27.65 million with the balance based on future profits.
Landsbanki initially will acquire a 50 per cent share holding in Merrion and will take the remaining 50 per cent over the next three years.
Established in 1999, Merrion is an independent broker employing 75 people in Dublin. The company has a market share of between 5 and 10 per cent in the stockbroking and corporate finance market.
The firm is 70 per cent-owned by its staff and 30 per cent by New York-based investment bank Allen & Company Inc. Merrion is expected to generate pretax profits of between €7 million and €7.5 million in 2005.
Landsbanki is Iceland's leading bank and is the ninth-largest bank in the Nordic region with a market cap of €3.3 billion and a total balance sheet of €15 billion.