By Maria Bruno-Britz
New York-based Citi plans to purchase outsourced services provider The Bisys Group (New York) for approximately $800 million. The financial services firm plans to retain the Investment Services Division of Bisys, which includes the Fund Services and Alternative Investment Services businesses in order to beef up its own position in the hedge and mutual fund services area. Once the deal closes, Citi will sell the Retirement and Insurance Services division of Bisys to affiliates of investment advisor J.C. Flowers & Co. (New York)."In addition to demonstrating Citi's continued commitment to investing in high-growth areas of our business, this acquisition enhances our fund of fund and mutual fund servicing capabilities while establishing Citi as a leading provider of private equity fund services," said Tom Maheras, co-president of Citi Markets & Banking, in a statement. "Citi is committed to integrating this new operation into a world class, scaleable business and enhancing our innovative service offering to new and existing Citi clients."
The transaction is expected to close in the second half of this year and is subject to Bisys shareholder approval and to regulatory approvals in the United States, Ireland and Bermuda.