LONDON - Montagu Private Equity said on Thursday that it had acquired a UBS business unit that administers employee share-participation programs for corporations in Europe and Asia.
The sale of the unit, known as the Corporate Employee Financial Services International, is expected to close in 2014. Montagu is a European private equity firm with 3.3 billion euros ($4.5 billion) in assets under management. Terms of the deal were not disclosed.
“We are very excited by this opportunity to invest in CEFS International and look forward to partnering with its strong management team to help the firm realize its full potential as a stand-alone business,†said Mads Hansen, a director at Montagu.
The group is part of UBS’s wealth management business and administers employee share programs for about 100 corporate clients in Europe and Asia.
The deal, which is subject to regulatory approval, comes as UBS has been shrinking its investment bank and shifting its focus to core business lines, particularly in its wealth management and retail operations. The Swiss bank eliminated 10,000 jobs last year as part of the overhaul.
UBS will retain Equity Plan Advisory Services, its United States business that provides similar management of employee stock plans, and considers that business integral to its wealth management operations.
