Signing of Stock Purchase Agreement (SPA) to Acquire 75% Stake in Velocity
Hanwha Life Insurance is expanding its position as a global comprehensive financial group by acquiring Velocity Clearing, LLC, a local U.S. securities firm, becoming the first domestic insurance company to do so.
Hanwha Life announced on the 20th that it signed a Stock Purchase Agreement (SPA) on the 19th to acquire a 75% stake in the U.S. securities firm Velocity. Hanwha Life has secured an important foothold to directly source and sell financial products in the United States, the world's largest financial market.
Hanwha Life plans to create various investment opportunities in the U.S. based on its overseas subsidiaries, global financial networks, and infrastructure. It aims to strengthen long-term profitability and maximize synergy with its overseas financial businesses. Leveraging its strengths as a global institutional investor in the alternative investment sector, Hanwha Life plans to expand its business by offering various investment opportunities traditionally available only to institutions to individual customers as well.
Hanwha Life’s strategy is to achieve early business stabilization by directly utilizing Velocity’s core infrastructure and network and collaborating with the existing management team that has led the securities business. The acquisition process will be finalized after obtaining approval from regulatory authorities in both countries.
Founded in 2003, Velocity is an IT-based securities firm headquartered in New York that provides services to institutional investors. It offers a variety of financial services including clearing and settlement services, securities lending transactions, and prime brokerage services (PBS). With its proprietary technology, U.S. network and information, and excellent personnel, Velocity has the capability to develop into a digital platform business. Recently, it has maintained growth by expanding its U.S.-listed stock brokerage business targeting Korean and global customers.
Yeoh Seung-joo, CEO (Vice Chairman) of Hanwha Life, said, "This acquisition will serve as a catalyst to expand the capabilities of Korea’s leading insurance company globally and will be the foundation driving long-term growth."
Michael Logan, CEO of Velocity, said, “We have taken note of Hanwha Life’s proactive and pioneering global approach and expect new investment capital inflows in the U.S. based on successful models in Korea and the Asian market.”
Meanwhile, Hanwha Life is expanding its position as a global comprehensive financial group, having entered the overseas banking sector for the first time among domestic insurance companies by investing in a stake in Nobu Bank in Indonesia last April.
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