Silicon Valley Bank UK is purchased by HSBC for £1.

In an effort to save Silicon Valley Bank’s struggling UK division, the US banking behemoth HSBC purchased Silicon Valley Bank UK on Monday morning.

The acquisition was important in that it gave IT companies a safety net after they had feared losing access to their deposits.

Against competition from the Bank of London and an Abu Dhabi investment fund, the global behemoth emerged as a “white knight” late last night. This morning, Mark Kleinman stated they had taken the lead, according to CNBC.

Noel Quinn, the bank’s CEO, informed the markets this morning that the bank had paid £1 for Silicon Valley Bank UK.

“For our company in the UK, this acquisition makes tremendous strategic sense. Quinn stated this morning that it “strengthens our commercial banking franchise and improves our capacity to service innovative and quickly-expanding businesses, notably those in the technology and life-science industries, in the UK and abroad.

Following the transaction, businesses that previously banked with SVB UK can again access their funds as usual.

Also Read: Following a severe recession, the UK economy is recovering.

The Bank of England stated this morning that “the Bank and HMT can ensure that as a result of this transaction, all depositors’ money with SVBUK is safe and secure.

“Silicon Valley Bank’s regular operations will continue to be conducted by SVBUK. Customers won’t notice any changes, and all services will continue to run as usual.

The parent bank of SVB UK in the US, which failed following a ban run, will not have any of its liabilities assumed by HSBC.

The failure of the bank was referred to as a possible extinction-level disaster for the UK’s technology industry.

“We warmly welcome SVB UK’s clients to HSBC and look forward to assisting their expansion in the UK and abroad. Customers of SVB UK can carry on banking as normal secure in the knowledge that their deposits are protected by HSBC’s strength, safety, and security.

Quinn continued, “We warmly welcome SVB UK employees to HSBC and we are eager to begin working with them.