Xchanging, a global business processor, has signed a letter of intent with SIA-SSB, a financial and payment systems services provider, to form an enterprise partnership. As part of this agreement, Xchanging will acquire 51% of Kedrios, the Italian subsidiary of SIA-SSB that specialises in securities processing and fund administration services for the Italian market. Xchanging will assume operational control of Kedrios and its 152 employees. Upon completion, Xchanging will employ over 1300 staff and process over 40 million transactions per year for more than 100 customers on its continental European financial markets platforms.
The partnership will combine Xchanging’s European expertise in securities processing and investment account administration with Kedrios’ strengths in fund administration and in the Italian market. This partnership will be an important building block for the creation of a pan-European operator for securities processing, investment account administration and fund administration to blue-chip financial markets customers.
In addition, SIA-SSB and Xchanging are assessing the possibility of leveraging Xchanging’s pan-European expertise in procurement services. The partnership with SIA-SSB also provides a great opportunity for Xchanging to further develop its strategic 10% investment in CAD IT who in the future could become the software provider for the new partnership. CAD IT is the leading securities processing software provider in Italy with about 80% market share.
Massimo Arrighetti, SIA-SSB’s new chief executive officer (CEO), said: “As a result of this partnership with leading international business processor Xchanging, we can now achieve two main goals – on the one hand expanding the range of Kedrios business services and customers and on the other hand maintaining and developing Kedrios’ professional skills and technological know-how; the company’s two key strengths since its creation in 2001.”
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