British outsourcing group Xchanging has signed a letter of intent with Italian electronic payment company SIA-SSB to form an enterprise partnership (EP).

As part of this proposed EP, Xchanging will acquire 51% of Kedrios, the Italian subsidiary of SIA-SSB that specializes 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.

Xchanging will subscribe to a 51% stake in the EP through a share capital increase and invest in the EP over the next two years to re-organize the business and create a platform for future growth. Xchanging expects to grant SIA-SSB the option to sell its shareholding to Xchanging after the third anniversary of change of control.

David Andrews, CEO of Xchanging, said: “This enterprise partnership with SIA-SSB is a logical step in the growth strategy of Xchanging in the Continental European market for financial services as well as procurement. This new partnership leverages our successful platforms and gives us future opportunities for growth in the region.”

Massimo Arrighetti, CEO SIA-SSB, 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.”