TMF Group agreed to acquire Luxembourg-based fund administrator Selectra Management Co., a spokesman for TMF Group confirmed.
The transaction, which is subject to regulatory approvals from Luxembourg's financial industry regulator, will create a unit with €125 billion ($148 billion) in assets under administration, he said.
Financial services firm TMF Group will acquire the business from Farad Group.
Selectra was created in 2013 and provides services to money managers for the creation, management and distribution of alternative investment funds and UCITS funds.
The deal is a key milestone in TMF Group's efforts to grow its fund administration business, a news release said. Terms of the deal were not disclosed.
"Selectra is a well-established management company with the experience and the licenses to provide all the services that their clients — and our clients — require," Frank Welman, regional head of TMF Group, said in the release. "This will be a huge step forward for our organization."
Allen & Overy was legal adviser and PwC Luxembourg provided financial and regulatory due diligence to TMF Group. Deloitte Luxembourg was M&A adviser and Volckrick & Associates was legal adviser to Farad Group.