Deutsche Boerse’s settlement arm Clearstream has expanded its offering in the funds space by acquiring Swisscanto Funds Centre, the UK subsidiary of Zurich-based financial group Swisscanto.
Clearstream, a provider of post-trade services for financial services participants, agreed to buy 100 percent of SFCL business from Zürcher Kantonalbank. Deutsche Börse-owned international central securities depository has paid a sum in “the high double digit million euro range”, the company said in a statement on Monday.
No further financial details of the transaction were disclosed.
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Under the terms of the deal, all London-based employees of SFCL will transfer to Clearstream, doubling the size of the settlement company’s fund division. As part of the deal, Clearstream will also license SFCL products and extend its services to its international customers.
Clearstream will ensure the takeover takes place in a gradual way in order to ensure a smooth transition and confirmed the transaction will not affect the service for SFCL existing customers on both investor and fund promoter side.
Mark O’Brien, CEO at Swisscanto Funds Centre Ltd., commented: “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.”
Philippe Seyll, Co-CEO of Clearstream, added: “We always look for strategic opportunities to further enhance our offering to the market. The knowhow 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.”