Dive Brief:
- JPMorgan has agreed to buy Irish fintech Global Shares, which provides businesses with software to manage employee share plans, the bank announced in a press release Tuesday.
- The transaction is forecasted to close in the latter half of 2022. Upon completion of the deal, Global Shares will be integrated into JPMorgan’s Asset and Wealth Management division.
- The terms of the deal have not been officially disclosed, but the acquisition is valued at $730 million, according to The Irish Times and Barron’s.
Dive Insight:
JPMorgan Chase, the nation's largest bank, is barred by regulators from acquiring U.S.-based deposit-taking institutions because the firm already holds over 10% of U.S. deposits.
But that stricture hasn't quelled the bank's desire to grow through its purchasing power — especially overseas. JPMorgan in January acquired a 49% stake in the Greek fintech Viva Wallet. But it has been relatively quiet since.
That lull stands in contrast to much of 2021, when the bank made more than 30 acquisitions, according to Reuters, which cited data from Refinitiv and Dealogic. That includes a trio of deals in September — for the college financial planning platform Frank; the restaurant platform The Infatuation, which owns the Zagat guidebook; and nearly 75% of German car-maker Volkswagen’s payments platform.
Overseas, JPMorgan last year agreed to buy British digital wealth management platform Nutmeg for a reported £700 million ($972.8 million), and took a 40% ownership stake in the Brazilian digital bank C6. It also launched a digital-only retail bank in the U.K. in September.
"The addition of Global Shares is complementary across our entire J.P. Morgan franchise from new client acquisition for our Global Private Bank and U.S. Wealth Management businesses to providing new, innovative capabilities to private and public companies globally and helping their employees manage their wealth," Mary Callahan Erdoes, CEO of JPMorgan's asset and wealth management business, said in Tuesday's press release.
After the deal is complete, Global Shares will remain headquartered in Cork, Ireland. The tie-up is not expected to result in any job losses at Global Shares, The Irish Times reported. The company — which has 600 employees in Cork and 16 other locations — boasts more than 600 corporate clients and $200 billion in assets.
"We are tremendously excited to partner with J.P. Morgan and to continue on our journey of being a leading player in equity incentive services,” Global Shares CEO Tim Houstoun said Tuesday. “Together, we will accelerate the expansion of our business globally, as well as the range of services we offer to our clients and their employees."
Tuesday's deal also follows a 2020 pledge from CEO Jamie Dimon that JPMorgan would be “much more aggressive with acquisitions across the board.”
"Global Shares' cap table management capabilities represent an important addition to the portfolio of digital solutions we are building for private companies," Michael Elanjian, JPMorgan’s head of digital private markets, said in the release.
