(Updated with acquisition price and quotes from Clearstream.)
By Carlo Martuscelli
Clearstream, the post-trade services provider of Deutsche Boerse AG (DB1.XE), said on Tuesday that it will buy a majority stake in UBS Fondcenter from UBS Group for 389 million Swiss francs ($401.6 million).
Fondcenter, a part of the bank's asset-management division, will be combined with Clearstream's Fund Desk unit. UBS will retain a 48.8% interest in the merged business, with the option to sell its remaining stake later, the lender said.
The Swiss bank said that it expects an after-tax gain of $600 million and to recognize a CET1 capital increase of about $400 million from the deal, which it expects to close in the second half of this year.
Stephan Leithner, a member of Deutsche Boerse's executive board and the chairman of Clearstream, said that the acquisition complements its investment funds distribution arm.
"Our distributor customers will benefit from extended global fund provider coverage, while asset manager clients will have direct access to UBS global wealth management's premier distribution network as well as access to Clearstream distribution reach," he said.
The combined business will have $230 billion in assets under management. Clearstream said it will enter into commercial cooperation arrangements to provide services to UBS.
Write to Carlo Martuscelli at email@example.com; @carlomartu