Xchanging, the processing services specialist, is to buy FondsServiceBank (FSB), the fund administration business of Germanys DAB bank, for EUR21.4 million (USD29.22 million) in cash.
FSB clients will migrate to the Fondsdepot Bank platform, owned by Xchanging and Allianz Global Investors. The migration is to be finished by second quarter 2010.
According to a Xchanging spokesperson, the acquisition gives Fondsdepot Bank a unique opportunity to become the investment funds settlement and clearing processor of choice in Germany
FSB has in the region of 460,000 customer contracts and estimated revenues in excess of EUR40 million in 2008.
“Through the acquisition of FSB, we are able to add well-known asset managers to our existing enterprise partnerships with Deutsche Bank and Allianz Global Investors,” Xchanging’s head of European Financial Services Matthias Sohler said in a statement.