BNP Paribas acquires the online bank Floa

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BNP Paribas SA Overview

BNP Paribas S.A. is a French international banking group. It is the largest bank in Europe and the seventh-largest bank in the world by total assets. It was formed through the merger of Banque Nationale de Paris (BNP) and Paribas in 2000. It is one of the four major French international banks alongside Crédit Agricole, Société Générale and Groupe BPCE.

It includes a retail banking section and investment banking operations, with its retail banking networks serving more than 30 million customers in three domestic markets, France, Italy, Belgium, and Luxembourg through retail brands, BNP Paribas, BNL, and Fortis respectively.

                                     BNP Paribas Group Revenue

                               BNP Paribas Group Performance

Floa Bank Overview

Provider of banking and insurance services based in Bordeaux, France. The company, through its extensive banking outlets, mobile payment solutions, and instant loan facilities focus on offering varied financial services including loan provisioning, credit purchase, insurance products, and internet banking services allowing it to effectively support the financial needs of individuals and client businesses.

Floa Bank is more than 280 employees specialized in e-commerce, payment facilities, IT, data…who form a highly motivated group every day to better support and serve our customers. It is a Forerunner in the field of dematerialization of banking, it continues to innovate to facilitate the daily life of consumers with new products, such as electronic signature, the instant mini-loan and many more.

FLOA Bank Net Income Evolution                       

FLOA Bank Total Assets

                                                                                                

Deal Purpose :

BNP Paribas, Casino Group and Crédit Mutuel Alliance Fédérale have signed an exclusivity agreement providing for the acquisition by BNP Paribas of all outstanding shares in FLOA, one of France’s leading providers of innovative payments and a subsidiary of Casino and Crédit Mutuel Alliance Fédérale (through Banque Fédérative du Crédit Mutuel – BFCM), for a total consideration of €258 million, for an equity of €184 million as of end-2020

Taking up the challenge of very strong growing e-commerce market associated with changing consumer habits and customer expectations with regard to payment methods, the sale of FLOA Bank to BNP Paribas has been decided.

Initiating a new development cycle, the transaction will enable FLOA to capitalize on BNP Paribas’ expertise and areas of business, particularly in view of European deployment is another purpose to the transaction.

And finally, developing the FLOA PAY split payment solution between Casino Group and BNP Paribas so as to enhance the offering of payment solutions available to customers and strengthen our leading position as a consumer credit provider in France and Europe.

Deal Outcome & Synergies :

 BNP Paribas continues its deployment with the Nickel account (over 2 million customers in France), and its online bank Hello bank! This week, it is with its latest acquisition, Floa Bank (ex-Banque Casino) that the establishment unveiled its ambitions abroad :

  • The fintech, bought this summer for 258 million euros, will be launched in Italy and Portugal « in September 2022 ». This is a way to reach the 5 million customers it is aiming for in four years. For the time being, the fintech already has 3 million customers.
  • Floa Bank is under the shoulder of BNP Paribas and will now take advantage of the institution’s influence to expand. Its payment services are already available in Belgium and Italy. With these new markets, its credit contractions have increased by 22% to 1.2 billion euros in the first half of 2021.
  • At the same time, BNP Paribas is stepping up the pace with the Nickel account. In September, the bank launched a new metal bank card and began depositing checks. Customers are among the most satisfied with their bank in France.

Deal Summary :

Deal Structure :

 The acquisition by BNP Paribas of all outstanding shares in FLOA, one of France’s leading providers of innovative payments and a subsidiary of Casino and Crédit Mutuel Alliance Fédérale (through Banque Fédérative du Crédit Mutuel – BFCM), for a total consideration of €258 million, for an equity of €184 million as of end-2020.

  • For this exclusive agreement, Casino stake valued at an amount of €179m.

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