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

Why Ponzi Schemes Work: An In-Depth Look At The Allen Stanford Fraud

Dec 21 2014 | 10:30am ET

Texan Allen Stanford first appeared on the radars of financial regulators in 1997...

Lifestyle

Hedgie Funds US Squash Program

Dec 24 2014 | 8:46am ET

Squash, anyone?

Guest Contributor

EidoSearch’s Top Three Market Projections For 2015

Dec 23 2014 | 4:03am ET

It is that time of year again when prognosticators make their big market calls for...

 

Sponsored Content

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

December 2014 Cover

Futures 2014 person of the year

Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.