Clearstream to Acquire 51% of Fund Distribution Platform From UBS for CHF 389m

Clearstream, Deutsche Börse Group’s post-trade services provider, will be acquiring 51% of Zurich-based fund distribution platform Fondcenter AG from UBS for CHF 389 million, with the transaction expected to be completed in H2 2020.  As part of the transaction, UBS and Clearstream will enter into long-term commercial cooperation arrangements for the provision of services to UBS.

While UBS plans to retain a minority stake of 49%, Clearstream will fully consolidate Fondcenter in order to have more than USD 230 billion in Assets under Administration (AuA). It will become the center of excellence for fund distribution services within Deutsche Börse Group and will significantly enhance Clearstream’s existing Fund Desk business.

Theodor Weimer, CEO of Deutsche Börse AG, said: “This acquisition of the majority stake in Fondcenter and the associated long-term partnership with UBS is a testimony for the trustful client relationship. And it is a further important and strategically significant step for Deutsche Börse in implementing our Roadmap 2020.”

Stephan Leithner, Member of the Executive Board of Deutsche Börse AG and Chairman of Clearstream, added: “Our leading position in the fund servicing area will be critically strengthened by Fondcenter and the UBS partnership. It complements our product offering in the investment funds distribution space. Our distributor customers will benefit from extended global fund provider
coverage, while asset manager clients will have direct access to UBS GWM premier distribution network as well as access to Clearstream distribution reach. We expect to generate significant synergies from combining our fund distribution businesses.”

Sergio P. Ermotti, CEO UBS Group AG, said: “We are delighted to reach this agreement with Clearstream, building on the successful relationship we have had with them and Deutsche Börse Group for many years. Through this transaction, and our long-term cooperation arrangements, we can achieve greater scale and breadth of offering for our clients and create significant value for our shareholders.”

Fondcenter AG is expected to grow its revenues by double-digit rates over the next years with additional meaningful revenue synergies from cross-selling into the Clearstream client base.

This deal will help Clearstream in growing the B2B fund services as part of Deutsche Börse Group’s strategy. Clearstream has already grown its service portfolio in the area through the acquisition of Swisscanto Funds Centre Ltd and the subsequent creation of Clearstream Fund Desk. With the addition of SFCL to its portfolio, Clearstream expects the revenue in the low double-digit million euro levels as well as cross-selling synergies to materialize.

The firm has broadened its international network by acquiring Ausmaq, a Sydney-based custodian of funds. Ausmaq administers managed funds and term deposits for leading wrap platform providers and wealth managers in Australia. At present, over 1,400 managed funds are available on the Ausmaq platform, which processes approximately 350,000 managed fund transactions annually.