Feeds

Egg buys Zebank

Focuses on 'up-market and metropolitan' punters

  • alert
  • submit to reddit

Internet Security Threat Report 2014

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

More from The Register

next story
Bono apologises for iTunes album dump
Megalomania, generosity and FEAR of irrelevance drove group to Apple deal
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Arab States make play for greater government control of the internet
Nerds told to get lost in last-minute power grab bid at UN meeting
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
Doctor Who's Flatline: Cool monsters, yes, but utterly limp subplots
We know what the Doctor does, stop going on about it already
Zippy one-liners, broken promises: Doctor Who on the Orient Express
Series finally hits stride, but Clara's U-turn is baffling
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
America's super-secret X-37B plane returns to Earth after nearly TWO YEARS aloft
674 days in space for US Air Force's mystery orbital vehicle
10 Top Tips For PRs Considering Whether To Phone The Register
You'll Read These And LOL Even Though They're Serious
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Win a year’s supply of chocolate
There is no techie angle to this competition so we're not going to pretend there is, but everyone loves chocolate so who cares.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
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?
Saudi Petroleum chooses Tegile storage solution
A storage solution that addresses company growth and performance for business-critical applications of caseware archive and search along with other key operational systems.