Feeds

Egg buys Zebank

Focuses on 'up-market and metropolitan' punters

  • alert
  • submit to reddit

Bridging the IT gap between rising business demands and ageing tools

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?

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Nadella: Apps must run on ALL WINDOWS – PCs, slabs and mobes
Phone egg, meet desktop chicken - your mother
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.