Xchanging acquired the stake from Deutsche Bank in 2004 in return for a EUR40 million investment in the venture and has been delivering securities processing services to the bank since.

The vendor says that Deutsche Bank has decided that the securities processing services provided by XTB are a "core process over which it prefers to have operational control".

Says a statement: "The transaction will form a part of the overall Deutsche Bank strategy to harmonise the new IT and process platform, to facilitate front-to-back process integration and to reduce complexity."

Xchanging will continue to provide services from India to XTB following the transfer of ownership while Deutsche Bank has agreed to continue to consider the vendor for future deals.

Some of the proceeds will be used to pay down the balance remaining on Xchanging's bank term loan, with the rest invested.

The Deutsche Bank decision comes just weeks after the London Metals Exchange called time on its eight year relationship, worth £25 million per annum, with the vendor.

Nevertheless, in an interim management statement the company insists that its "transformation agenda" - migrating from a small number of large partnership contracts such as the Deutsche Bank and LME deals to one predicated on a larger number of contracts with a wider base of customers - is going well.

Trading in the first four months of the year has been in line with expectations, with the insurance business performing particularly well and the company "retains a healthy financial position with a strong balance sheet".

Shares were down 1.38 pence, or 0.9%, at 139.88 pence per share, in morning trading.