Clearstream, the post-trade services provider and a part of Deutsche Börse AG has acquired Swisscanto Funds Centre Ltd., London (SFCL), the UK subsidiary of Zurich-based financial group Swisscanto. The acquisition will enable Clearstream to expand its offerings in the investment funds’ space.
In the agreement signed on April 23rd, 2018, Clearstream has agreed to acquire 100 percent stake of SFCL business from Zürcher Kantonalbank. Though the financial part of the deal has not been made public, the company in a statement said the acquisition price is in high double-digit million euro range. The deal is expected to close within the third quarter of 2018 and is subject to approval from various regulatory authorities.
The funds’ platform SFCL will become a 100 percent subsidiary of Clearstream and the transactions will not affect the terms of services for existing clients. Under the terms of the deal, Clearstream will be allowed to expand its services in the funds’ space with the management of distribution contracts and data processing and will also license SFCL products and extend its services to its international customers. All the employees of SFCL London division will be transferred to Clearstream, thus doubling its employee strength for the fund division.
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. Philippe Seyll, Co-CEO of Clearstream Banking S.A. and Head of Investment Funds Services at Clearstream commented:
“We always look for strategic opportunities to further enhance our offering to the market. The know how we acquire from SFCL in areas such as distribution contract management, data management and dissemination, combined with our expertise in funds processing will enable us to provide our clients with new value-adding services. This further bolsters our strong position in the funds’ space.”
Mark O’Brien, CEO at Swisscanto Funds Centre Ltd., said:
“Thanks to the acquisition by Clearstream, SFCL will be able to boost growth and generate the necessary economies of scale. Bundling volumes, tapping into new markets, and incorporating the fund platform business into Clearstream’s post-trading product range provides us with new opportunities. The SFCL team is looking forward to offering existing and new clients an even more comprehensive range of services.”
