Butterfield Bank is set to get a multi-million dollar boost after announcing the completion of the merger of its Bermuda-based and international Fund Services businesses with independent fund administrator Fulcrum Group to form the new company Butterfield Fulcrum Group (BFG).

The bank will realise a gain of about $115 million from the deal in the third quarter of 2008 after the regulatory approvals for the merger were completed following the initial announcement of the deal in August.

BFG has a significant presence in fund administration globally, ranking in the top 10 among independent alternative asset fund administrators. It has approximately $100 billion in assets under administration from close to 1,000 funds and 400 employees in 10 locations across nine countries.

Butterfield retained a substantial ownership interest in BFG, in excess of 40 percent, with Alan Thompson, president and CEO, and Graham Brooks, executive vice-president of international at Butterfield, set to be named as directors along with other representatives from Fulcrum and its shareholders 3i on the Butterfield Fulcrum Group Board, which will be chaired by former Fulcrum Group chair Jill Considine.

Mr. Thompson said: "We are pleased that we were able to complete the strategic merger of Butterfield Fund Services with Fulcrum Group in such a timely manner.

"With our significant ownership stake, Butterfield Fulcrum Group provides the bank with a platform for continued participation and growth in the field of international fund administration.

"In addition, this transaction allows us to unlock for shareholders the significant value that we have built up in Butterfield Fund Services over the years.

"I would like to express my thanks to everyone at Butterfield and Fulcrum, along with our advisers, for the excellent work they've done in establishing Butterfield Fulcrum Group. The new company will offer customers enhanced services, improved technology and the benefits of added scale.

"With tremendous growth prospects, Butterfield Fulcrum Group also presents fund administration employees with expanded opportunities."

Akshaya Bhargava, CEO of BFG, said, "We are extremely pleased that we have received the necessary approvals and can now move forward with the work of integrating Fulcrum Group and Butterfield Fund Services.

"We have a very talented team of professionals across the BFG network who are eager to help us fulfil our goal of becoming the world's best fund administrator. All of us are committed to ensuring that the transition will be seamless for clients, and within very short order, we expect that clients will begin to experience the benefits of this strategic merger, with access to a broader range of services, enhanced technology and office locations in multiple time zones."

Whitney Bower, 3i partner, said: "With the necessary approvals now in place, the Butterfield Fulcrum Group will be a major force in the global fund administration industry. 3i's industry knowledge and strong global network have enabled us to support Fulcrum's international expansion, particularly in Europe and India, and we very much look forward to accelerating this growth through the partnership which this merger of Fulcrum and Butterfield brings."