U.S. Based bank Capital One purchased game-changing online bank ING direct US for $9 bn.
$9 bn. For 7 million customers. You do the math!
What Capital one gets is a well-running online banking business model. ING is built around an online consumer model. With only seven outlets in the US – all built as coffeshops – there is little in terms of traditional banking outlets. But probably more important is the culture Capital One is buying. ING Direct has always been a game-changer, a challenger, an innovator. That’s what’s worth paying a premium for.
But can you really buy culture? Knowing that between 50 – 7 % of m&a’s fail, what can be expected from this one? Keep your eyes on the likely fallout as cultures crash and the innovation engine that was worth paying $9 bn. for walks out the door and takes the innovation capacity with them…… Will this be another banking m&a down the drain?
Check out the picture series of ING Direct’s banking cafes.