Marex to acquire Winterflood Securities for a sum of £103.9 million
The financial services company Marex Group has announced its acquisition of Winterflood Securities, a leading UK equity market maker, from Close Brothers Group for approximately £103.9 million in cash. The deal, expected to close in early 2026 pending regulatory approval, is set to significantly impact the UK institutional sector.
Winterflood Securities, with a market share of around 15% by volume on the London Stock Exchange, brings strong client relationships and advanced technology to Marex. The acquisition is anticipated to broaden Marex's distribution capabilities, particularly in servicing the UK institutional sector, which includes asset and wealth management firms.
Marex Group's CEO, Ian Lowitt, stated that the acquisition provides an opportunity to transform their existing equity market making business into a leading franchise. He sees potential for Winterflood's technology and brand recognition to enhance Marex's offerings to institutional investors.
The acquisition is expected to bring new clients and capabilities onto Marex's platform, diversifying earnings and distribution offerings for the UK institutional community. It may also deepen institutional client relationships through access to a wider array of Marex's financial products.
In addition to market-making activities, Winterflood operates Winterflood Business Services, offering outsourced dealing, settlement, and custody services to large institutions, investment platforms, wealth managers, and retail aggregators. This aspect of the business is expected to support economies of scale and operational efficiencies, improving profitability in the institutional sector.
The CEO of Winterflood Securities, Bradley Dyer, expressed delight at becoming part of Marex Group, a high-growth, global financial services company with a strong balance sheet. He believes that the acquisition will provide Winterflood with the resources and support necessary to continue growing and serving its clients effectively.
It's important to note that the acquisition will not result in changes for Winterflood's clients, as they will continue to be served by the same team. Similarly, the acquisition of Winterflood Securities by Marex Group is not mentioned to have any direct impact on GlobalData reports and data insights.
This strategic move positions Marex to strengthen its presence and influence within the UK institutional equity market by expanding connectivity, service scope, and product distribution tailored to institutional clients’ needs. The deal is consistent with Marex's strict financial criteria, and they see opportunities to materially improve Winterflood's profitability and pay back its premium within two to three years.
In conclusion, the acquisition of Winterflood Securities by Marex Group is a significant step towards strengthening Marex's UK cash equities operations and expanding its services to institutional clients, especially asset and wealth managers. The deal is expected to provide benefits for both parties, including improved profitability, access to new clients and capabilities, and a broader range of products and services for institutional investors.
The acquisition will not only improve Marex Group's equity market making business by transforming it into a leading franchise but also broaden its distribution capabilities, particularly in servicing asset and wealth management firms. The deal is expected to leverage Winterflood's advanced technology and AI platforms, which could enhance Marex's offerings to institutional investors.
With Winterflood's outsourced dealing, settlement, and custody services under its banner, Marex Group will experience economies of scale and operational efficiencies, potentially improving profitability in the institutional sector.
The acquisition is further aimed at positioning Marex to strengthen its presence within the UK institutional equity market by enhancing connectivity, service scope, and product distribution tailored to institutional clients’ needs. This strategy aims to provide benefits for both parties, including access to new clients and capabilities, and a broader range of products and services for institutional investors.
