Bank of Ireland has confirmed the sale of its corporate finance arm, IBI, in a management buyout deal that is understood to be worth around €10m.

IBI has operated as a subsidary of Bank of Ireland for over five decades.

The corporate finance firm provides advice to businesses on complex transactions such as mergers and acquisitions as well as debt advisory and corporate restucturing.

The management buyout is being led by Tom Godfrey, IBI's chief executive and Ted Webb, its managing director. 

In a statement, Bank of Ireland said it will maintain a strong working relationship with IBI.

"The transaction arises following a proposal from IBI management and represents an attractive commercial proposition for Bank of Ireland whilst allowing IBI to further develop as an independent entity to the bank," the statement added.