London, Mar 13 (IANS): HSBC UK Bank plc is acquiring Silicon Valley Bank UK Limited (SVB UK) for 1 pound, after a weekend of frantic negotiations by UK officials.

In a statement, HSBC says the transaction "completes immediately". The acquisition will be funded from existing resources, the Guardian reported.

"As at 10 March 2023, SVB UK had loans of around 5.5 billion pounds and deposits of around 6.7 billion pounds. For the financial year ending December 31, 2022, SVB UK recorded a profit before tax of 88 million pounds. SVB UK's tangible equity is expected to be around 1.4 billion pounds. Final calculation of the gain arising from the acquisition will be provided in due course," HSBC said.

The sale to HSBC has been taken to "stabilise SVBUK", says the Bank of England.

The UK central bank says the deal will ensure the continuity of banking services, minimise disruption to the UK technology sector and support confidence in the financial system, the Guardian reported.

Importantly, the Bank of England and HM Treasury can confirm that all depositors' money with SVBUK is safe and secure as a result of this transaction.

That will be a massive relief for tech companies, who feared an ‘existential threat' to their businesses if they had lost their funds at SVB UK, the Guardian reported.

The BoE add that the deal with HSBC means SVB UK will not now be put into insolvency.

It says, "SVBUK's business will continue to be operated normally by SVBUK. All services will continue to operate as normal and customers should not notice any changes".