Feeds

Egg buys Zebank

Focuses on 'up-market and metropolitan' punters

  • alert
  • submit to reddit

Secure remote control for conventional and virtual desktops

Egg is to buy Zebank for E8 million (£5 million) in cash and expand its online banking business into France.

The UK ebank will go live in France – which has the third largest financial services market in Europe - later this year.

Egg expects to spend around £15 million in development costs to get the venture off the ground.

And it also intends to spend an additional £50 million in marketing and building up its brand.

Egg reckons it will attract one million punters in the first three years and predicts it will make a profit by the end of 2004.

Zebank – owned by Groupe Arnault and Dexia – was France's first e-bank when it launched in February 2001. A year on and it has 70,000 customers and 120,000 accounts.

According to Egg, Zebank customers are "up-market and metropolitan" with the majority of them living around Paris.

Zebank employs around 300 staff, although this is expected to grow as the business increases.

Last week, Egg confirmed it was in talks with Zebank after originally refusing to comment on newspaper reports that a deal was on the cards.

By late morning shares in Egg were up 9.5p (6.5 percent) at 155p. ®

Related Story

Egg to buy Zebank?

Top 5 reasons to deploy VMware with Tegile

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Getting ahead of the compliance curve
Learn about new services that make it easy to discover and manage certificates across the enterprise and how to get ahead of the compliance curve.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.