The takeover comes less than 12 months after TSB rejoined the London stock market in a split from the Lloyds Banking Group.
TSB is expected to keep its name and branding, and said that ownership would help accelerate TSB's growth strategy.
In January, TSB opened up its intermediary channel, which it announced as "the next step in the bank's growth strategy which aims to ‘shake up’ the broker market".
TSB has recruited more than 200 people in the past six months and invested in 24 local relationship managers to provide support to brokers.
Commenting on the Offer, Will Samuel, Chairman of TSB, said:
“Since the IPO, TSB has pursued a strategy focused on growing its share of personal current accounts, accelerating asset growth through re-entering the intermediary mortgage channel and providing the kind of banking that people want. The offer from Sabadell represents a significant endorsement of TSB’s progress since its IPO and provides TSB shareholders the opportunity to receive today in cash the value that would otherwise be unlocked over time as TSB executes its strategy.”
Paul Pester, Chief Executive Officer of TSB, said:
"Since its launch on high streets across Britain in September 2013, TSB has been successful in attracting new customers and establishing itself as Britain’s challenger bank. Today’s offer by Sabadell to acquire TSB is a real vote of confidence in TSB, our 8,700 employees and the straightforward, transparent approach we’re bringing to banking in the UK.
"With the support of Sabadell, TSB will benefit from the full capabilities the wider group will have to offer enabling us to accelerate our competitive capabilities even further.
"I’m looking forward to working with Sabadell to continue to bring great banking to consumers across Britain, accelerate the expansion of our services to business customers and to continue to bring more."
Kevin Mountford, head of banking at MoneySuperMarket, said:
“Banco Sabadell’s successful takeover bid is recognition of the rapid growth success of TSB since the brand was re-launched in the UK. It is also a sign that the UK banking market is proving an attractive proposition for investors, especially in comparison to the rest of Europe. While the Spanish banking market remains turbulent, the UK market has seen strong growth in some areas, with TSB being one of the most successful banking brands to launch in recent times. It is therefore no surprise that this deal has come off.
“While it is early days, this takeover is unlikely to impact customers - at least in the short-term. It is likely TSB will remain a UK based entity and continue to be covered by the Financial Services Compensation Scheme. However, with Banco Sabadell’s investment, TSB can grow further and generate much needed competition, particularly in the retail and SME space.”
