HSBC Holdings PLC has agreed to buy the UK arm of Silicon Valley Bank (SVB) for a reported price of ₹99. The move will give HSBC access to over US$8.1 billion in deposits and a range of technology banking services.
The acquisition of the UK business of SVB will give HSBC a significant presence in the UK’s tech ecosystem, allowing it to provide banking and financial services to more than 4,000 technology, venture capital and private equity firms.
HSBC said the deal will allow it to become a “leading provider of banking services to tech firms and venture capital firms in the UK”. It added that the acquisition would enhance its existing offer to technology and venture capital clients and position it to capture growth opportunities in the sector.
The deal is expected to be completed in the second half of 2020, subject to regulatory approval. HSBC plans to retain the SVB brand in the UK, and the bank’s existing staff will join HSBC.
The acquisition is part of HSBC’s strategy to become the leading international bank for tech companies. The bank has been expanding its technology-focused banking services in recent years, including launching a fintech accelerator in London.
