Patagon, an argentine online brokerage who was planning a US ipo, has been acquired by Banco Santander of Spain valuing it at $ 700 million.
Patagon has +- 20,000 customers in all.
that's $ 35,000 *per customer*.
(and Patagon is NO Cybercorp..., no direct access trading software nor anything of that kind)
EGRP should be valued at more than 70 BILLION at that kind of ratio.
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BSCH Sets Deal to Acquire
Patagon.com for $585 Million
By PAMELA DRUCKERMAN
Staff Reporter of THE WALL STREET JOURNAL
Latin American financial services company Patagon.com Inc. announced Thursday that it is being acquired by Spain's Banco Santander Central Hispano SA for $585 million.
The deal, which involves the sale of 75% of Patagon's shares, teams the fast-growing online firm with one of the largest commercial banks in Spain and Latin America. It fortifies BSCH to go head-to-head with Banco Bilbao Vizcaya Argentaria SA, another massive Spanish bank that recently created an online unit.
Patagon will become BSCH's exclusive online brand, and will operate in Europe, Latin America and the U.S., the individual said.
The transaction also shows the lofty levels being paid for access to Latin America's nascent Internet market. The sale to BSCH values Miami-based Patagon at $705 million. Just three months ago, the closely held company raised capital at a valuation of $106 million. Spokespeople for BSCH and Patagon couldn't immediately be reached.
Patagon's management and employees will retain ownership of their shares, which represent roughly 25% of the firm. CEO Wenceslau Casares, 26 years old, will remain as head of Patagon. President Daniel Canel will retain that post and take charge of merging BSCH's online assets with those of Patagon. Patagon, which doesn't disclose its revenue or user numbers, was launched out of Argentina in 1997.
The company's private equity investors, some of whom invested in earlier rounds that valued Patagon at $12 million, are cashing out. Chase Capital Partners, the private equity arm of Chase Manhattan Corp., owns about 20% of Patagon. New York-based Internet investment firm Flatiron Partners LLC and the private equity unit of J.P. Morgan & Co. together hold about 5% of the company. Other investors include the private equity arms of Goldman Sachs Group Inc., Mexican telecommunications company Telefonos de Mexico SA and Brazil's GP Investimentos. Representatives of those firms either declined to comment or couldn't immediately be reached.
Write to Pamela Druckerman at pamela.druckerman@wsj.com |
