Zuercher Kantonalbank, Switzerland’s fourth-largest bank, sold a fund platform to a German bidder. The Zurich-based bank expects to receive a substantial sum for the unit.
Clearstream, owned by the German stock exchange, agreed to buy Swisscanto Funds Centre London (SFCL), according to a statement released by Zuercher Kantonalbank (ZKB) on Tuesday. The German buyer will retain all SFCL’s staff in London, according to the agreement sealed on Monday.
Zuercher Kantonalbank, a state-owned company, will receive a high double-digit million euro amount. The translation will likely be completed in the third quarter of 2018 and is pending regulatory approval.
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The deal allows Clearstream to expand fund services with the management of distribution contracts and data processing. It will focus on extending the services offered by SFCL today and providing these services also to its international customers. Clearstream expects to increase sales by a low double-digit million euro amount.
ZKB will remain one of the main distributions partners of Swisscanto Funds Centre, the company said in the statement. The Swisscanto fund management and asset management units, both owned by ZKB, will remain long-term partners of SFCL.
