Clearstream, the Luxembourg-based international central securities depository owned by Deutsche Börse Group, is to acquire a majority stake in UBS’s fund distribution platform Fondcenter AG.
Fondcenter will be combined with Clearstream’s Fund Desk business to create a “leading fund servicing provider”, the firms said.
Clearstream will buy 51% of Fondcenter AG from UBS for 389 million Swiss francs (€362 million).
UBS will retain a minority of 49% and the transaction is expected to complete in the second half of 2020.
The combined distribution service will have over $230 billion in assets under administration and the two firms will enter into long-term commercial cooperation arrangements for the provision of services to UBS.
Stephan Leithner, an executive board member of Deutsche Börse and chairman of Clearstream, said: “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.”
Leithner added that distributors using the service would benefit from extended coverage from global fund providers, while asset-manager clients would have direct access to UBS global wealth management’s distribution network and Clearstream’s distribution reach.
Fondcenter AG anticipates growing its revenues by double-digit rates over the next few years with “revenue synergies from cross-selling into the Clearstream client base”.
Over the past two years, Clearstream has grown its fund service portfolio through the acquisition of Swisscanto Funds Centre Ltd, which subsequently led to the creation of Clearstream Fund Desk, and it has broadened its international network by acquiring Ausmaq, a Sydney-based custodian of funds.
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