Flatex Just Bought DEGIRO – Now What?

German broker Flatex just announced they bought their Dutch competitor, and my favorite, DEGIRO. What does this mean to us, retail investors?

About Flatex

Flatex is a large online broker from Germany, that recently tried to get a position in the Dutch market. Their marketing department was working long hours I think, but all of a sudden that stopped.

I have had an account with Flatex, because of a bonus they were giving out. If you opened this account before a certain deadline and made one trade, you got a free 100 euro bonus. That was one of the easiest 100 euros I’ve ever made.

After looking around in their platform a bit, I decided I didn’t like it that much, so I withdrew my money (with 100 euros profit) and put it in my DEGIRO account.

The Acquisition

Flatex has disclosed they’re trying to acquire DEGIRO at a valuation of 250 million euros. Flatex itself is worth about 440 million euros, according to its market cap as a publicly traded company.

As of last week, they hold a 9.4% share in DEGIRO, which they bought for 23.6 million euros in cash. In total, the deal is said to be worth 60 million in cash and 190 million in Flatex shares.

The owners of DEGIRO can FIRE, based on these numbers…

What Happens To Our DEGIRO Portfolios?

Nothing will happen, at least for now. The acquisition will probably be finalised in the second quarter of next year. Until then, I don’t expect anything to happen.

What happens afterwards is unclear. Maybe Flatex will include all DEGIRO accounts into their platform. Maybe the two platforms keep existing side by side. Who knows?

In the meantime, I will be investing using my DEGIRO account just like I always have.

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