Citi Buys Administrator Bisys For $1.47 Billion

May 2 2007 | 10:19am ET

Citi has agreed to pay almost $1.5 billion for Bisys Group, one of the world’s largest hedge fund administrators, the Wall Street giant said this morning. The deal instantly makes Citi a major player in the hedge fund and mutual fund services business, as well as a top administrator for the private equity industry.

Citi will pay shareholders of its fellow New York-based firm $12 per share, including a $0.15 special dividend, totaling some $1.47 billion in the all-cash deal, expected to close in the second half of 2007. The acquisition is subject to regulatory approval in the U.S., Ireland and Bermuda.

The bank only plans to keep Bisys’ investment services division. After the deal closes, it will sell the firm’s retirement and insurance services division to p.e. firm J.C. Flowers & Co. for approximately $670 million, making the net cost to Citi roughly $800 million.

“Bisys’ investment services division propels Citi into a market-leading position in hedge fund administration and mutual fund servicing, and integrating it into Citi’s global network will extend our full-service client platform and reaffirm our focus on serving the needs of high-growth markets, including private equity and hedge funds,” Citi Markets & Banking Co-President Michael Klein said.


In Depth

Exotic Assets: Investing In Rare Violins

Jan 17 2017 | 4:43pm ET

By definition, alternative investments include exotic assets far beyond your typical...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Trump Administration: What It Could Mean for Carried Interest

Jan 19 2017 | 5:25pm ET

The arrival of the Trump administration brings the potential for a repeal of the...

 

From the current issue of

Often seen as a passion project, or part of a philanthropic venture, rare and fine stringed instruments offer an exciting option to diversify one’s investment portfolio while providing an opportunity for an exceptional long-term investment.