UK business processor Xchanging is set to acquire a 51% stake in Kedrios, a unit of Italian e-payments group SIA-SSB that specialises in securities processing and fund administration services. Financial terms were not disclosed.
Xchanging and SIA-SSB have signed a letter of intent to form an enterprise partnership which will see the British outsourcing firm assume operating control of Kedrios and its 152 staff, which posted revenues of EUR18 million for the year ended 31 December 2009.
The deal gives Xchanging a foothold in the Italian market, combining its European expertise in securities processing and investment account administration with Kedrios' strengths in fund administration, says a statement.
It will be an "important building block" for the creation of a pan-European operator for securities processing, investment account administration and fund administration to blue-chip financial markets customers.
Xchanging also suggests that Cad IT, the Italian financial software firm it acquired a 10% stake in in 2005, could in the future become the software-provider for the new partnership.
David Andrews, CEO Xchanging said, "This Enterprise Partnership with SIA-SSB is a logical step in the growth strategy of Xchanging in the Continental European market for financial services as well as procurement."
The enterprise partnership is expected to break even during 2011, and deliver profits in 2012. Xchanging also expects to grant SIA-SSB the option to sell its remaining shareholding after three years.