European securities trader X-Trade Brokers (XTB) has received a €57 million infusion of cash through an investment deal with Enterprise Investors. Enterprise acquires a significant minority stake through the transaction, which is being funded by the Polish Enterprise Fund VI.
Exceptional growth and revenue over the last several years are two of the major factors that prompted Enterprise’s interest. The acquisition will benefit XTB by allowing them to continue their global expansion plans with an experienced European investor. The deal must still be approved by Polish authorities.
X-Trade Brokers (www.xtb.com)
X-Trade Brokers is one of Europe’s leading brokerage houses first established in 2002. The firm now operates in twelve European countries and is regulated by the Financial Supervision Commission.
XTB offers OTC products as well as commodity, equity, FOREX, and stock exchange trading.
In 2010 the firm won the award for best broker in Germany and Eastern Europe; they were named Poland’s second-best equity broker in 2009, and in 2005, best-in-class broker in eastern Europe.
XTB’s client list of more than 25,000 across 20 different countries helped the firm earn net profits of more than €12 million in 2009.
Enterprise Investors (www.ei.com.pl)
Enterprise Investors was established in 1990 after the implementation of the U.S. government-funded Polish-American Enterprise Fund, an investment vehicle designed to provide equity funding for the Polish private sector. The firm has invested in excess of €1.3 billion in more than 100 projects in the last 20 years, while raising more than seven funds worth a combined total of €1.7 billion.
Enterprise Investors invests mainly in private, medium-sized business with an average horizon of three to seven years. Portfolio companies receive EI support in strategic planning, financial decision-making, and professional recruitment. EI prefers to stay away from day-to-day operations. While Polish investments are EI’s top priority, the firm looks at other potential projects that will help expand its reach in Central and Eastern Europe.