(Bloomberg) — flatexDEGIRO AG, the online brokerage, is attracting preliminary interest from private equity firms, according to people familiar with the matter.
Buyout firms are studying the feasibility of a take-private of Frankfurt-listed Flatex, the people said, asking not to be identified discussing confidential information. Flatex has a market value of 2 billion euros ($2.3 billion).
Flatex is open to considering any formal takeover offers, a spokesperson for the company said, declining to comment further. Shares in Flatex jumped as much as 21% on Wednesday.
Formerly known as FinTech Group AG, Flatex was founded by Bernd Foertsch in Kulmbach, Bavaria. It competes with firms such as Sweden’s Nordnet AB, Switzerland’s Swissquote Group Holding AG and Hargreaves Lansdown Plc in the U.K.
The company previously considered a sale before opting to buy Amsterdam-based rival Degiro BV to create a “Charles Schwab” of Europe. Like other online brokers, Flatex saw a rise in users during the Covid-19 pandemic, with stay-at-home orders fueling a surge in retail trading.
The firm had 1.9 million customers at the end of the third quarter of 2021, 64% more than the same period a year prior. Revenue for the quarter rose by more than a third to 88.1 million euros, according to company earnings. Despite this, Flatex’s shares have fallen 17.5% in the past year.
(Updates with shares in third paragraph and company users, revenue in final paragraph.)
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