Clearstream, a provider of post-trade services, has agreed to acquire Swisscanto Funds Centre (SFCL) in London from Zürcher Kantonalbank for an undisclosed sum.
The funds platform SFCL is the UK subsidiary of Zürcher Kantonalbank group company, Swisscanto Holding, Zürich.
SFCL will continue to operate as a subsidiary of Clearstream, and its London-based employees will be shifted to Clearstream.
The deal is expected to help Clearstream extend its services in the funds segment with the management of distribution contracts and data processing activities.
Clearstream intends to focus on expanding SFCL’s services to the international customers.
Clearstream said the addition of SFCL to its portfolio is expected to generate revenues in the low double digit million euro area.
Going forward, Zürcher Kantonalbank will serve as one of the main distribution partners for SFCL.
Under the long-term contractual agreement, Zürcher Kantonalbank’s subsidiaries, including Swisscanto Fund Management and Swisscanto Asset Management, will continue to serve as large fund providers for the company.
Subject to approval of relevant authorities, the deal is expected to complete in the third quarter of this year.
Zürcher Kantonalbank executive board member and institutional and multinationals head Dr Stephanino Isele said: "We found a professional and reliable buyer for SFCL (Swisscanto Funds Centre Ltd.) in Clearstream, one of the world’s largest and most secure providers in the fund settlement business.
“When Zürcher Kantonalbank decided to sell SFCL, securing the fund platform for clients, fund providers, and employees – on a sustainable basis and in the long term – was of utmost importance for the bank."
Swisscanto Funds Centre CEO Mark O’Brien said: “Bundling volumes, tapping into new markets, and incorporating the fund platform business into Clearstream's post-trading product range provides us with new opportunities.”
With around 5,000 employees, Zürcher Kantonalbank offers a range of products and services under private banking, commercial banking and asset management segments.
Image: Zürcher Kantonalbank executive board member and institutional and multinationals head Dr Stephanino Isele. Photo: courtesy of Zürcher Kantonalbank.