Financial institutions sought to improve operational efficiency through dealmaking, with board rooms focused on navigating market fragmentation, digital disruption, ongoing regulatory pressures, and the threat of cyber breaches.
FinTech is changing the face of financial services and overturning assumptions about the way they are delivered. Established strategic actors in the FinTech sector looked to consolidate market positions through acquisitions, while private equity and venture capital investments in FinTech continued to grow as well.
Our Financial Institutions sector group focused on the theme of "Future opportunities in a fractured world." We held summits in Hong Kong, New York, and London, sharing insights on the geopolitical climate and rapid growth of new business issues as well as opportunities for global banking.
We also provided training and produced thought leadership around the themes that present key concerns for our clients – regulation, Brexit, cybersecurity, FinTech, digitalization, the rise of alternative lenders, managing risks, and life after LIBOR.
We advised Deutscher Sparkassen Verlag GmbH (DSV), which is part of the Sparkasse Financial Group, on the formation of a payment services joint venture with Ingenico Group S.A., a global payment business. The transaction combines DSV-owned BS PAYONE GmbH with Ingenico retail assets in Germany, Austria, and Switzerland (the DACH region).
PAYONE GmbH will be a leading payment service provider within the DACH region. With its 330,000 acceptance points, it is expected to process an annual transaction volume of €125bn.
The M&A team was led out of Frankfurt with support from our antitrust, employment, finance, and IP practices.
We advised GE Capital, the financial services division of General Electric (GE), on the sale of a US$1.5bn health care equipment finance (HEF) portfolio from GE Capital’s HEF business to TIAA Bank, a provider of nationwide banking and lending services. Additionally, we advised GE Capital on a five-year vendor financing agreement with TIAA Bank for U.S. customers of GE Healthcare.
The health care portfolio includes loans and leases to approximately 1,100 hospitals as well as 3,600 physician practices and diagnostic and imaging centers across the United States.
The M&A team was led out of Washington, D.C. with support from our finance, IP, litigation, regulatory, and tax practices.
Lloyds Banking Group
We advised long-standing clients Lloyds Banking Group and Scottish Widows on the acquisition of Zurich’s UK workplace pensions and savings business.
The target business has assets under administration of approximately £19bn. The deal expands Scottish Widows’ offering and extends its role in the financial planning and retirement space while providing a modern, flexible workplace savings platform.
Our M&A team in London led the transaction, with support from lawyers in our employee benefits, employment, finance, IP, pensions, real estate, and tax practices.
We advised PayPal on its investment into Pine Labs, India’s largest retail payment platform, with financing coming jointly from PayPal and Temasek, the sovereign wealth fund of the Singapore government.
Pine Labs offers a smart, cloud-based point-of-sale platform aimed at expanding and accelerating commerce and automation for merchants in local markets. PayPal’s global presence and strong product expertise — combined with Temasek’s deep network in Asian markets and extensive knowledge of financial services companies — helps to position Pine Labs for accelerated growth and evolution.
Our Singapore M&A team led this transaction.
Read next: Insurance M&A