LONDON, April 23 (Reuters) - Deutsche Boerse's settlement arm Clearstream has expanded its post-trade services for hedge funds by acquiring an Ireland-based business from fund administration provider Citco.
Clearstream has agreed to buy Citco's hedge fund custody processing business based in Cork, southern Ireland - which processes complex trade orders from financial institutions to hedge funds - for a "sum in the mid double digit million euro range", the two companies said in a statement on Wednesday.
No further financial details of the transaction were disclosed.
Under the terms of the deal, 300 Citco employees will transfer to Clearstream, doubling the size of the settlement company's hedge fund processing division. Clearstream will also license Citco's custody IT infrastructure.
Clearstream launched the service three years ago aiming to roll out its automated and standardised system for routing trade orders to hedge funds, as well as mutual funds.
Philippe Seyll, head of investment funds services at Clearstream, said its clients had become comfortable again with alternative investment funds after retreating from them at the height of the financial crisis.
Appetite to invest in more sophisticated instruments was still growing and the division was expected to expand further in the future, he added. (Reporting by Clare Hutchison; Editing by Mark Potter)