Deutsche Börse‘s post-trade service provider, Clearstream has completed the acquisition of CHF 389 million (around $423 million) of a majority stake in Fondcenter AG, a distribution network for UBS funds.
The two parties agreed on the deal in January, but it was closed on Wednesday. Clearstream now owns a 51.2 percent stake in the B2B fund distribution support platform, while UBS is still holding the rest.
With this deal, Clearstream merged its existing Fund Desk with the Fondcenter business, forming Clearstream Fund Centre. The new platform has over $290 billion in assets under administration, and the management is anticipating a double-digit revenue growth over the next few years.
“Fondcenter’s fund platform business perfectly complements Clearstream’s existing fund distribution support services,” Bernard Tancré, CEO of Fondcenter and head of investment fund services product at Clearstream, said.
“With the newly combined Clearstream Fund Centre, fund distributors will now have access to contracts covering over 70,000 funds worldwide. We are delighted that we can offer this comprehensive portfolio to our existing and future client base.”
UBS will serve as a strategic network partner and will also be committed to Clearstream’s long-term service provision arrangement, including continuing to use the Fund Centre network.
“In Clearstream, we have a trusted owner to further develop and grow the business,” UBS Asset Management head, Michael Kehl added. “The combined Fund Centre platform is well-placed for the future, and we wish the team every success as they take the business forward.”