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

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...