Clearstream acquires Swisscanto Funds Centre
April 24, 2018

Deutsche Börse Group's post-trade services provider Clearstream says it is expanding its offering in the funds space by acquiring Swisscanto Funds Centre Ltd, London (SFCL), from Zürcher Kantonalbank. It adds that a purchase agreement was signed on April 23. The transaction for a high double-digit million euro amount is expected to close within the third quarter of 2018, subject to approval of relevant authorities. For Deutsche Börse Group, the investment will be accretive in the first year.

The funds platform SFCL will continue to exist as a 100 percent subsidiary of Clearstream. Currently, SFCL is the UK wholly owned subsidiary of Swisscanto Holding Ltd, Zürich, a Zürcher Kantonalbank group company. This transaction will not affect the service for existing customers of SFCL on both investor and fund promoter side. All London-based employees of SFCL will be transferred to Clearstream.

The deal allows Clearstream to expand its services in the funds space with management of distribution contracts and data processing. Clearstream will focus on extending the services offered by SFCL today and providing these services also to its international customers. By adding SFCL to its portfolio, Clearstream expects revenues in the low double digit million euro area as well as cross-selling synergies to materialize.

Zürcher Kantonalbank will remain one of SFCL's main distribution partners. In addition, a long-term contractual agreement was made that the two subsidiaries of Zürcher Kantonalbank, Swisscanto Fund Management Company Ltd. and Swisscanto Asset Management International SA, will continue to act as large fund providers for the company.

Philippe Seyll, Co-Chief Executive Officer of Clearstream Banking SA and Head of Investment Funds Services at Clearstream, said: "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."





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Deutsche Börse Group's post-trade services provider Clearstream says it is expanding its offering in the funds space by acquiring Swisscanto Funds Centre Ltd, London (SFCL), from Zürcher Kantonalbank. It adds that a purchase agreement was signed on April 23. The transaction for a high double-digit million euro amount is expected to close within the third quarter of 2018, subject to approval of relevant authorities. For Deutsche Börse Group, the investment will be accretive in the first year.

The funds platform SFCL will continue to exist as a 100 percent subsidiary of Clearstream. Currently, SFCL is the UK wholly owned subsidiary of Swisscanto Holding Ltd, Zürich, a Zürcher Kantonalbank group company. This transaction will not affect the service for existing customers of SFCL on both investor and fund promoter side. All London-based employees of SFCL will be transferred to Clearstream.

The deal allows Clearstream to expand its services in the funds space with management of distribution contracts and data processing. Clearstream will focus on extending the services offered by SFCL today and providing these services also to its international customers. By adding SFCL to its portfolio, Clearstream expects revenues in the low double digit million euro area as well as cross-selling synergies to materialize.

Zürcher Kantonalbank will remain one of SFCL's main distribution partners. In addition, a long-term contractual agreement was made that the two subsidiaries of Zürcher Kantonalbank, Swisscanto Fund Management Company Ltd. and Swisscanto Asset Management International SA, will continue to act as large fund providers for the company.

Philippe Seyll, Co-Chief Executive Officer of Clearstream Banking SA and Head of Investment Funds Services at Clearstream, said: "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."



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