Royal Bank of Canada Tuesday acquired a 20 percent stake in AOL Canada, Inc. for $60 million.
The agreement also holds that Royal Bank and its U.S. subsidiaries, online bank Security First Network Bank and online brokerage Bull & Bear
Securities, will launch a $7.5 million co-marketing project across AOL’s
North American properties.
Royal Bank has the option to acquire more equity in AOL Canada.
The two companies will also develop secure online payment and other
e-commerce initiatives. Bundled or co-branded financial service packages
are also being considered.
AOL Canada plans to use the fund to speed up the release of its broadband services.
“This strategic alliance with the world’s leading company in interactive
services will provide consumers with easier access to our products, and
will help Royal Bank significantly grow its online business,” said John
Cleghorn, Royal Bank of Canada’s chairman and CEO.