Xchanging to acquire DAB bank funds administration unit
13 May 2009 | 4625 views | 0
UK-based BPO outfit Xchanging is to acquire the investment funds administration business of DAB bank for a total consideration of up to EUR21.4 million.
The FondsServiceBank (FSB) business unit provides its services to blue-chip asset managers as well as retail customers under its MultiFonds operation. The business claims approximately 460,000 customer contracts and estimated revenues of over €40 million in 2008.
Xchanging will make the deal through Fondsdepot Bank (FDB), its joint venture 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 company says the business wil strengthen 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, comments: "Xchanging continues its growth strategy in Germany. 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."