Northern Trust has agreed to buy UBS Asset Management’s fund administration servicing units in Luxembourg and Switzerland for an undisclosed amount.
The deal, which is expected to complete in the second half of this year, will see Northern Trust – which currently has $8.5 trillion (€8.06 trillion) of assets under custody/administration – become the fund administration services provider for UBS funds with around 420 billion Swiss francs (€394 billion) in assets.
A joint statement from both companies said that UBS clients would continue to work with their existing relationship management teams.
“This agreement represents a significant opportunity for Northern Trust and our clients as we broaden our scale, products and market reach across Europe,” said Northern Trust Corporation chairman and CEO Frederick Waddell.
“We look forward to expanding our service offering in Switzerland and further deepening our presence in Luxembourg.”
Ulrich Koerner, president of UBS Asset Management, said that the deal would “enable us to further focus our efforts on helping clients address their global investment challenges, while ensuring their fund administration needs continue to be well served”.
Northern Trust has operated in Luxembourg since 2004 and the deal will propel Northern Trust into the top ten of the duchy’s asset servicing providers in terms of assets under administration.
Goldman Sachs International was Northern Trust’s financial adviser for the deal.
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