Xchanging, a London-based professional services firm, has acquired the FondsServiceBank (FSB) business unit, the Germany-based investment funds administration business of DAB bank AG, for up to €21.4 million (£19.1 million) in cash.

FSB provides services to blue-chip asset managers, as well as retail customers, and generated revenues of some €40 million in 2008.

Matthias Sohler, head of European financial services at Xchanging, said: “Xchanging continues its growth strategy in Germany. We are strengthening our customers by efficiently handling their business processes as partners.”

Xchanging reported a 19 per cent increase in revenues to £557.8 million, with operating profit up 28 per cent to £49.7 million.

The transaction is subject to competition clearance by the German Federal Cartel Office (Bundeskartellamt).