Clearstream, the Luxembourg-based post-trade services provider for funds and other securities, said it has closed the deal with bank UBS to create a fund centre.
The deal sees Clearstream take a majority stake in Fondcenter AG from UBS.
Outsourcing by fund distributors of “resource-intensive” services such as fee management and documentation were among reason given for the acquisition.
Clearstream agreed the acquisition with UBS in January and paid 389 million Swiss francs (€360 million) for a 51.2% stake in Fondcenter.
The deal results in the creation of Clearstream Fund Centre, with over $290 billion of assets under administration, and UBS – which remains a minority shareholder – as a client.
Bernard Tancré, CEO of Fondcenter and head of investment fund services product at Clearstream, said fund distributors now have access to contracts covering over 70,000 funds worldwide through the deal.
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