HSBC announced a deal to buy the UK Subsidiary of collapsed US Silicon Valley Bank

HSBC announced a deal to buy the U.K. arm of collapsed US tech startup lender Silicon Valley Bank.

HSBC agreed to buy the SVB U.K. for £1. The transaction excludes the assets and liabilities of SVB U.K.’s parent company.

HSBC Group CEO Noel Quinn, “The acquisition strengthens our commercial banking franchise and enhances our ability to serve innovative and fast-growing firms, including in the technology and life-science sectors, in the U.K. and internationally. SVB U.K. customers can continue to bank as usual, safe in the knowledge that their deposits are backed by the strength, safety and security of HSBC.”

The Bank of England facilitated the sale in discussion with the U.K. Treasury.  The Treasury said in a statement, “will protect the deposits of SVB U.K. clients.”

British Finance Minister Jeremy Hunt said, “The deal ensures customer deposits are protected and can bank as normal, with no taxpayer support. The U.K.’s tech sector is genuinely world-leading and of huge importance to the British economy, supporting hundreds of thousands of jobs. U.K. administration and the Bank of England were working to avoid or minimize potential damage resulting from the U.K. branch of SVB.”

U.S. regulators also approved plans to backstop depositors and financial institutions in connection with US parent company SVB.

The U.S. Treasury Department categorized both SVB and Signature Bank as systemic risks, allowing it to de-stress both institutions in a manner that protects depositors.

The CEO of London-based tutoring app Lingumi, Toby Mather expressed relief, “I think I speak on behalf of U.K. start-ups when we say this is a huge relief.”

Startups expressed relief in response to the rescue deal of HSBC to buy the UK arm of Silicon Valley Bank.

Dom Hallas, executive director of U.K. start-up association Coadec, said, “The government-facilitated deal had saved hundreds of the U.K.’s most innovative companies.”