Capita buys AIB financial services arm for €33m

CAPITA Group is to buy the international financial services business of Allied Irish Bank,AIBIFS, for €33 million.

The sale of the Dublin headquartered AIBIFS is part of a planned sell-off of non-core assets by AIB, which has resulted in the sale of subsidiaries, such as Goodbody Stockbrokers, to Kerry’s FEXCO.

AIBIFS provides outsourced services, including corporate administration, treasury management, securitisation and middle and back office services to financial institutions and corporate clients.

Capita said the business is set to integrate into its investor and banking services division, which employs about 2,000 people in Ireland and the rest of Europe and India, and offers trust and fiduciary services, shareholder services, fund administration, treasury management and commercial mortgage servicing, including acting as master servicer to the National Asset Management Agency in Ireland.

Capita Group country manager for Ireland,Robbie Hughes, who also heads Capita’s asset services business, said: “This is a key, strategic acquisition for Capita in Ireland and provides real business development prospects for both the company and its people. AIBIFS is one of the leading promoters and providers of services within Dublin’s international financial services centre and, backed now by the Capita Group, its professional team of management and staff will be able to further develop the range of its outsourced services to corporates and the financial services industry.”

AIBIFS employs around 100 people in Dublin, with an additional 60 members of staff across other locations in Switzerland, Luxembourg and Hungary.

The deal is subject to approval by the appropriate regulatory authorities in Ireland, Luxembourg and The Netherlands.

Close to 550 people have departed AIB since June 2010. The 2,000 planned redundancies announced in April are set to be implemented from October.