By Elena Vardon

Italy's Azimut said it agreed to spin off a part of its financial advisor network into a new entity to create a new digital bank in partnership with private-equity fund FSI.

The asset manager said late Thursday that FSI is buying about 80% of TNB for a potential consideration of around 1.2 billion euros ($1.35 billion) to be realized over time. This includes 240 million euros in cash once the transaction closes by the end of the fourth quarter plus up to 210 million euros in deferred cash and as much as around 760 million euros in earnouts tied to performance when FSI exits.

Azimut, which will keep a strategic stake of just under 20% in TNB, had announced a project to merge part of its distribution network with a new digital bank in March 2024. It launched operationally in May.

Under the agreement, TNB will be dedicated to wealth advisory services and be the main third-party distributor of Azimut's products. The 20-year industrial partnership also guarantees that TNB will bring in at least 2.4 billion euros in fees for Azimut over a period of 12 years minimum.

"The transaction signed today between Azimut and FSI, aimed at enhancing shareholder value, exceeds 3 billion euros, in line with public takeover bids currently on the market," Azimut's founder and chair Pietro Giuliani said.

The goal is for the new entity, which will operate as an independent player with a network of 900 professionals and more than 25.6 billion euros in client assets, to eventually pursue a stock market listing, it said.

Azimut said it now targets around 1 billion euros in net profit depending on whether TNB is allowed to operate this year and confirmed that it expects to bring in around 10 billion euros in net inflows in 2025.

Shares traded 4.5% higher at 27 euros in morning exchanges in Europe.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

May 23, 2025 03:58 ET (07:58 GMT)

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