UBS to Offload its Administration Servicing Units to Northern Trust

UBS AG has entered into a definitive agreement to offload its administration servicing units in Luxembourg and Switzerland to US financial services giant, Northern Trust (Nasdaq: NTRS), part of the latest move in the M&A space.

The sale of UBS’ administration servicing unit in both Luxembourg and Switzerland is the latest move by the lender, which has seen several internal moves and shifts in strategy over the past year. The group also has opted to scale back its landmark wealth management unit, as well as ushering in a round of job cuts to help offset industry headwinds.

The Acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term of the units to Northern Trust will help the group expand its presence in Europe, mainly Luxembourg, which will also help achieve administration capabilities in Switzerland. The transaction is targeting a closure date in Q2 2017, though is subject to requisite regulatory and fund board approvals.

The deal will also help Northern Trust become a fund administration services provider for funds in excess of $400 billion in assets. For its part, UBS will still have its clients continue to be supported by their current relationship management teams following the transaction. By extension, UBS Asset Management will continue to offer management company, white labelling and representative services to its clients.

According to Northern Trust Corporation Chairman and Chief Executive Officer Frederick H. Waddell in a statement on the sale: “This agreement represents a significant opportunity for Northern Trust and our clients as we broaden our scale, products and market reach across Europe. We look forward to expanding our service offering in Switzerland and further deepening our presence in Luxembourg.”

"We believe the transaction and ongoing collaboration with Northern Trust is a compelling proposition for our clients, who will benefit from the combined resources and capabilities of UBS Asset Management and Northern Trust, along with our mutual commitment to innovation and an industry-leading platform," added Ulrich Koerner, President of UBS Asset Management.