IR Releases - Archive

April 8, 2002

Deutsche Bank completes acquisition of Zurich Scudder Investments

-Combined business to be among world’s largest asset managers-

Today Deutsche Bank (Xetra: DBKG.n.DE / NYSE: DB) announced the closing of the acquisition of 100% of U.S.-based asset manager Zurich Scudder Investments (Scudder), excluding Scudder's UK operations (Threadneedle) from Zurich Financial Services (Zurich) for the equivalent of USD 2.5 billion. The closing is the first step in the completion of a broader transaction agreement between Deutsche Bank and Zurich that also includes the sale of Deutsche Bank's stake in Deutscher Herold and all of its insurance businesses in Italy, Spain and Portugal to Zurich. The transaction was first announced in September 2001.

"The completion of this acquisition furthers Deutsche Bank's strategic objective and commitment to achieving scale in our global Private Client and Asset Management (PCAM) business," commented Rolf-E. Breuer, Spokesman of the Board of Managing Directors of Deutsche Bank and Chairman of the Group Executive Committee.

I. Scudder acquisition
With the acquisition of Scudder, Deutsche Bank is positioned to become the fourth largest manager of as-sets globally, with leading positions in Europe, Asia Pacific and the Americas. Combined assets under management reach approx. EUR 1.0 trillion.

The addition of Scudder’s retail fund business in the U.S., which will retain the long-established and reputable "Scudder Investments" brand, will complement Deutsche Asset Management's leading position in the European retail business through it's DWS Investments franchise. Scudder’s institutional and Private Investment Counsel business also strongly complement Deutsche Bank’s existing institutional and Private Banking franchises, especially in the U.S.

"The combination allows for additional investment expertise more effectively leveraged across the globe," said Tom Hughes, Member of the Group Executive Committee and Global Head of Asset Management. "Our global orientation is supported by extensive lo-cal expertise, providing clients with depth and breadth of capabilities across geographic markets, industries, asset classes, and investing styles," he added.

Deutsche Bank’s enhanced global investment platform will provide decisive benefits to clients:
  • Stronger investment platform in which research is fundamentally integrated with portfolio management.
  • First class products and teams for its retail, institutional and private banking clients.
  • Broad range of products, including active equity, passive equity, fixed income, currency, quantitative, asset allocation, structured products, cash management, and alter-native investments.
  • Expertise of the Investment Solutions Group, which includes the Research Center, its team of global economists, and the Pension Strategies, Transition Management, and Securities Lending groups.

The magazine "Institutional Investor" classified the transaction in 2001 as a "Deal of the Year".

Integration plan
An aggressive integration program under the leadership of Tom Hughes will ensure that both firms will be fully integrated with most integration expected to be completed within the next 100 days.

Deutsche Bank expects to transition out more than 1,500 employees as a result of the Scudder transaction. The majority of the reductions will occur in the Americas, where a large part of Scudder’s operations exist. This constitutes more than 20% of the combined global headcount. Over 80% of those employees have either already left or are scheduled to leave during this quarter.

In the Americas, Deutsche Bank's asset management business will focus on major hubs in New York, Chicago and Boston, rightsize other locations and transfer mid- and back-office activities to less expensive locations.

So far, client reception has been overwhelmingly positive. Client consent has already been received from over 99% of Scudder’s institutional clients. The fact that of the total of approx. 1,000 institutional clients only around 30 have previ-ously been served by both organizations shows how complementary this transaction is and what tremendous growth opportunities exist.

Potential Synergies
Deutsche Bank sees substantial synergies arising from this transaction. On the cost side potential cost savings of EUR 300 – 400 mn were identified and targeted in a bottom-up process with the individual business managers.

II. Deutscher Herold / Bonnfinanz
The next step in the broader transaction agreement between Deutsche Bank and Zurich after the acquisition of Scudder is the closing of the sale of 75.9% of "Versicherungsholding der Deutschen Bank AG (VHDB)" (including Deutscher Herold and Bonnfinanz) which is scheduled to take place in the next few days. Deutsche Bank's acquisition of Zurich’s asset management businesses in Germany and Italy and the sale of all of Deutsche Bank's insurance activities in Italy, Portugal and Spain to Zurich are expected to be closed later in the 2nd quarter 2002.

The agreed price calculation basis for 100% of VHDB (excluding Bonnfinanz) and all of Deutsche Bank's insurance activities in Italy, Portugal and Spain amounts to EUR 1.5 billion. On balance, Deutsche Bank acquires 100% of Scudder in exchange for its 75.9% stake in VHDB (including Bonnfinanz) plus a net cash payment of EUR 1.8 billion.

Conference Call
A conference call for analysts to provide further explanation on the transaction, hosted by Mr. Tom Hughes, Global Head of Asset Management, Dr. Axel Wieandt, Global Head of Corporate Development (AfK) and Dr. Wolfram Schmitt, Global Head of Investor Relations, will take place at 2.30 p.m. CET and 8.30 a.m. EST.

All interested parties are invited to follow the call on a listen-only mode at under "IR Newsboard/ Video & Audio". Acrobat Reader charts supporting the conference call are available from 12.00 a.m. CET and 6.00 a.m. EST onwards on the internet at

This Investor Relations Release contains forward-looking statements. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations. Any statement in this Investor Relations Release that states our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. These statements are based on plans, estimates and projections as they are currently available to the management of Deutsche Bank. Forward-looking statements therefore speak only as of the date they are made, and we undertake no obligation to update publicly any of them in light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. A number of important factors could therefore cause actual results to differ materially from those contained in any forward-looking statement. Such factors include the conditions in the financial markets in Germany, in Europe, in the United States and elsewhere from which we derive a substantial portion of our trading revenues; potential defaults of borrowers or trading counterparties; the implementation of our restructuring including the envisaged reduction in headcount; the reliability of our risk management policies, pro-cedures and methods; and other risks referenced in our filings with the U.S. Securities and Exchange Commission. Such factors are described in detail in our SEC Form 20-F of March 27, 2002 on pages 9 through 13 under the heading "Risk Factors." Copies of this document are readily available upon request or can be downloaded from stated below.

Link to further information

SEC Form 20 F - PDF / 2.7 MB

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