Erste acquires Random Capital
Erste Befektetési, the investment arm of Austrian-owned Erste Bank, has acquired Random Capital, making Erste the biggest broker on the Budapest Stock Exchange, Erste Befektetési chairman-CEO Róbert Cselovszki said yesterday, according to a release on the bourse's website.
The deal, which has been cleared by the National Bank of Hungary (MNB), will be closed "within weeks," Cselovszki said.
Random Capital has almost 22,000 securities accounts with a combined balance of around HUF 70 billion. Erste's money and equities markets and asset management division has more than 262,000 securities accounts with a combined balance of nearly HUF 3 trillion.
Random Capital's share of spot market turnover on the Budapest Stock exchange reached 5.7% in January-July. Erste's share was 23.9%. Random Capital founder and owner Ferenc Virág said the broker had reached a threshold requiring a "stable, capital-strong foundation" to expand its product offering.
The company had revenue of H UF 1.7 bln last year. Erste Befektetési's turnover from investment services reached HUF 43 bln in 2020.
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