Clearstream has acquired an Ireland-based hedge fund custody processing business in a move that will extend its connectivity services to 35,000 new funds.
An agreement signed today will see Clearstream acquire Citco’s hedge fund business for an undisclosed sum thought to be around €50 million.
The deal will enable Clearstream to expand its hedge fund service for financial institutions, adding 35,000 funds globally to its network.
Approximately 300 Citco Global Securities Services staff based in Cork will join Clearstream and an agreement between the two will enable a transition from Citco to Clearstream technology for clients that are migrating their services.
Phillipe Seyll, member of the executive board and head of investment fund services at Clearstream, said: “The additional business of Citco Global Securities Services’ hedge fund custody operation enables us to fast-track our standardisation and automation initiatives in the hedge funds industry and to offer our financial institution customers a superior value proposition.”
The deal is expected to be formally complete in September this year, at which point the first client migrations will occur, with full migration targeted before the end of Q2 2015.