Julius Baer buys ING's Swiss private banking business

Swiss private bank Julius Baer Group will buy ING Bank Switzerland for SFr520 million $505 million in cash.

Julius Baer will gain SFr15 billion of assets currently under management with ING in Switzerland, adding 10% to its current AUM. This will take Julius Baer's AUM to SFr160 billion as of August. The acquisition price translates into about 2.3% of AUM, excluding capital deemed surplus on the books of ING Bank Switzerland, and about 3% of AUM including the surplus capital, according to Julius Baer.

Julius Baer will also double its presence in Geneva through the addition of 310 ING staff, of which 80 are relationship managers.

The acquisition is expected to be...