23rd Aug 2007 07:30
Xchanging PLC23 August 2007 Allianz Global Investors and Xchanging plc announce a Retail Investment AccountManagement Partnership Frankfurt, August 22, 2007. Allianz Global Investors KapitalanlagegesellschaftmbH and Xchanging, the international, pure play BPO company, have signedcontracts to establish an enterprise partnership to provide retail investmentaccount management services. Subject to competition clearance, Xchanging,through it's Financial Markets business, will hold a 51 percent share in theHof-based Fondsdepot Bank GmbH and will take over the operational control ofthis unit effective from 1 November 2007 at the latest. Third party growth prospects for Fondsdepot Bank partnership and trend towardsoutsourcing The strategic goal of the partnership is to strengthen and grow the position ofFondsdepot Bank as the high-capacity, neutral provider in retail investmentaccount management and to generate third-party business for the cost-effectiveplatform. The partners will focus on expanding their business with independentfinancial consultants and broker pools and on exploiting the business potentialarising from the growing trend towards the outsourcing of administrativeprocesses. Benefits for both partners The partnership will provide Allianz Global Investors with guaranteed costsavings through a multi-year service agreement with clearly defined servicetargets. "With this partnership we are offering exciting future prospects for bothFondsdepot Bank and the operations in Hof. Moreover, we are leading the way forthe consolidation of an essential part of the asset management value-added chain", Dr. Thomas Wiesemann, CEO of Allianz Global Investors KAG, comments. The partnership endorses Xchanging's strategy as an international pure-play BPOcompany and brings a modern technology platform for retail investment accountmanagement services. Furthermore, it allows Xchanging to enter the Europeangrowth market of asset management and gives the outsourcing specialist the scaleto provide new customers with attractive retail investment account managementservices to add to those offered in securities processing. David Andrews, Xchanging CEO said, "we are delighted to partner with such aprestigious international organisation as Allianz Global Investors. This,together with our other partnerships signals our leadership in processing forthe financial services industry." Increasing productivity As a result of the partnership with Xchanging, Fondsdepot Bank will gainadditional momentum in the areas of process optimisation and efficiencyimprovement. This will significantly increase Fondsdepot Bank's productivity.The partners stress that operational stability during the transition phase isassured as the business will remain on the same secure platform. With continuityof both management and staff, the Fondsdepot Bank customers will see continuedhigh levels of service standards. Enterprise Partnership contract details: The arrangement is based on Xchanging's unique "Enterprise Partnership" model,designed to reduce the risk of and increase the value of large scale complexoutsourcing, through an open book partnership. The 8 year service agreement has an initial contract value of €400m. Supportingthis, Xchanging, through it's Financial Markets business, will acquire 51% ofFondsdepot Bank for a cash payment of €13m and has granted a put option toAllianz Global Investors for the remaining 49% for €13m exercisable after 4years. At 31 December 2006 the net assets of Fondsdepot Bank were €26m and thegross assets were €38m. At completion there is expected to be in excess of €10mcash in the balance sheet. This is an important investment for Xchanging toextend its balanced onshore/offshore strategy with a high quality, near-shorefacility in Hof. Fondsdepot Bank is regulated by the Bundesbank and BaFin, hasa partial banking licence and employs more than 400 people. About Xchanging Xchanging is a fast-growing international, pure play business processoutsourcing company providing complex industry specific processing to thebanking and insurance industries such as securities processing, commercialinsurance premiums and claims processing. We also provide procurement, financeand accounting, and human resources services to customers across industries.www.xchanging.com About Fondsdepot Bank Fondsdepot Bank GmbH which emerged from GKS Gesellschaft fur Kontenservice in2003, provides retail portfolio management and administration services on anopen fund platform to investment companies, distribution companies, banks andother businesses. With some 1.3 million active securities accounts and an assetvolume under management adding up to • 19.2 bn, Fondsdepot Bank is one of theleading providers in the area of retail investment account management in Germanyand offers its customers a portfolio adding up to some 6,500 public funds ofmore than 150 investment companies. Fondsdepot Bank which employs more than 400staff, is regulated by the Bundesbank and BaFin, and has a partial bankinglicence. Enquiries:Xchanging plcDavid Andrews Tel: 020 7780 6999Richard Houghton Tulchan GroupDavid Trenchard Tel: 020 7353 4200David Allchurch This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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