Wilmington Trust Corp. has announced the completion of its all-cash acquisition of UBS Fiduciary Trust Co. from UBS Americas Inc.
The New Jersey company, which sells trust and investment management services to retirement plans through financial advisers, on Monday became a unit of Wilmington Trust Fiduciary Services Co., which is part of Wilmington Trust's corporate client services business.
This was the second acquisition Wilmington Trust has made this year for its corporate client services retirement and institutional services business. In April, it bought Arizona-based AST Capital Trust Co., which doubled the capacity of its retirement business.
The two deals enable Wilmington Trust to supply directed trustee, custodial, trading, and paying agent services to more than 3,800 retirement and employee benefit plans with more than $47 billion of assets under administration.
The UBS deal extends a business alliance established in 2007 through which AST, now known as Wilmington Trust Retirement and Institutional Services Co., handled UBS Fiduciary Trust's operations.
Wilmington Trust Fiduciary Services, which is based in Delaware, will continue the relationship, providing fund accounting and benefit payment services.
Gregory W. Tschider, the president of Wilmington Trust's Retirement and Institutional Services Co., will also be the president of Wilmington Trust Fiduciary Services.
The full terms of this cash transaction, which is expected to be nondilutive to earnings this year, were not disclosed. The deal is expected to add $38 million of annual revenue and $36 million of expense.
