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13 May 2009 07:00
Acquisition of Investment Funds Administration Business
Xchanging announces that it has agreed to acquire the FondsServiceBank (FSB) business unit, the investment funds administration business of DAB bank AG (the "Acquisition"). Xchanging will acquire all contracts with distribution partners and customers relating to the safekeeping and administration of investment fund shares for a total consideration of up to €21.4 million (£19.1 million) in cash.
FSB provides its services to blue-chip asset managers as well as retail customers under its MultiFonds (similar to Xchanging's Open Architecture business) and had approximately 460,000 customer contracts as at 31 March 2009. FSB had estimated revenues of over €40 million in 2008.
Xchanging will make the Acquisition through Fondsdepot Bank (FDB), its Enterprise Partnership with Allianz Global Investors. The acquired customers will be migrated onto FDB's platform and the migration process is expected to complete by the end of Q2 2010.
The Acquisition gives FDB a unique opportunity to become the investment funds settlement and clearing processor of choice in Germany. In particular, the acquisition strengthens FDB's market position as a high capacity, independent provider of retail investment account management services in Germany. It also maximises scale benefits through the consolidation of FSB's volumes onto FDB's low cost processing platform in Hof, Germany.
Matthias Sohler, Xchanging's Head of European Financial Services, said "Xchanging continues its growth strategy in Germany. We are strengthening our customers by efficiently handling their business processes as partners. 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."
The transaction is subject to competition clearance by the German Federal Cartel Office (Bundeskartellamt).
ENQUIRIES
Xchanging plc Tel: 020 7780 6999
David Andrews, Chief Executive Officer
Richard Houghton, Chief Financial Officer
Tulchan Group Tel: 020 7353 4200
David Allchurch
Stephen Malthouse
13th May 2009
About Xchanging
Xchanging is a fast growing, pure play global business processor with blue chip customers. Xchanging provides complex industry specific processing to the banking and insurance industries as well as procurement, finance and accounting, and human resources services across industries.
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