Speed read: Clearstream to acquire majority stake in UBS's fund distribution platform Fondcenter AG. UBS to remain shareholder in the future business combination. Combination of Fondcenter with Clearstream's Fund Desk business will create a leading fund servicing provider with significant benefits for UBS and Clearstream clients.

In full

Deutsche Börse Group's post-trade services provider Clearstream and UBS have reached a joint agreement by which Clearstream acquires 51 percent of Zurich-based fund distribution platform Fondcenter AG from UBS for CHF 389 million. UBS will retain a minority of 49 percent.

The transaction is expected to be completed in the second half of 2020. Subsequent to the transaction, Clearstream will fully consolidate Fondcenter.

The newly combined distribution services will have over US$230 billion in assets under administration (AuA). As part of the transaction, UBS and Clearstream will enter into long-term commercial co-operation arrangements for the provision of services to UBS.

Theodor Weimer, CEO of Deutsche Börse AG, said: "This acquisition...is a testimony for the trustful client relationship, and it is a further important and strategically significant step for Deutsche Börse in implementing our Roadmap 2020."

Stephan Leithner, Member of the Executive Board of Deutsche Börse AG and Chairman of Clearstream, added: "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. Our distributor customers will benefit from extended global fund provider coverage, while asset manager clients will have direct access to UBS GWM premier distribution network as well as access to Clearstream distribution reach. We expect to generate significant synergies from combining our fund distribution businesses."

The official news release goes on to say that the newly combined company will become the centre of excellence for fund distribution services within Deutsche Börse Group and will significantly enhance Clearstream's existing Fund Desk business (formerly Swisscanto Funds Centre).

Fondcenter AG expects to grow its revenues by double-digit rates over the next years with additional meaningful revenue synergies from cross-selling into the Clearstream client base.

Over the past two years, Clearstream has grown its service portfolio in the area through the acquisition of Swisscanto Funds Centre Ltd and the subsequent creation of Clearstream Fund Desk, and it has broadened its international network by acquiring Ausmaq, a Sydney-based custodian of funds.

Bär & Karrer and Ardea Partners advised Deutsche Börse Group in this transaction.

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Speed read: Clearstream to acquire majority stake in UBS's fund distribution platform Fondcenter AG. UBS to remain shareholder in the future business combination. Combination of Fondcenter with Clearstream's Fund Desk business will create a leading fund servicing provider with significant benefits for UBS and Clearstream clients.

In full

Deutsche Börse Group's post-trade services provider Clearstream and UBS have reached a joint agreement by which Clearstream acquires 51 percent of Zurich-based fund distribution platform Fondcenter AG from UBS for CHF 389 million. UBS will retain a minority of 49 percent.

The transaction is expected to be completed in the second half of 2020. Subsequent to the transaction, Clearstream will fully consolidate Fondcenter.

The newly combined distribution services will have over US$230 billion in assets under administration (AuA). As part of the transaction, UBS and Clearstream will enter into long-term commercial co-operation arrangements for the provision of services to UBS.

Theodor Weimer, CEO of Deutsche Börse AG, said: "This acquisition...is a testimony for the trustful client relationship, and it is a further important and strategically significant step for Deutsche Börse in implementing our Roadmap 2020."

Stephan Leithner, Member of the Executive Board of Deutsche Börse AG and Chairman of Clearstream, added: "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. Our distributor customers will benefit from extended global fund provider coverage, while asset manager clients will have direct access to UBS GWM premier distribution network as well as access to Clearstream distribution reach. We expect to generate significant synergies from combining our fund distribution businesses."

The official news release goes on to say that the newly combined company will become the centre of excellence for fund distribution services within Deutsche Börse Group and will significantly enhance Clearstream's existing Fund Desk business (formerly Swisscanto Funds Centre).

Fondcenter AG expects to grow its revenues by double-digit rates over the next years with additional meaningful revenue synergies from cross-selling into the Clearstream client base.

Over the past two years, Clearstream has grown its service portfolio in the area through the acquisition of Swisscanto Funds Centre Ltd and the subsequent creation of Clearstream Fund Desk, and it has broadened its international network by acquiring Ausmaq, a Sydney-based custodian of funds.

Bär & Karrer and Ardea Partners advised Deutsche Börse Group in this transaction.