23 October 2017

Citi to buy Bisys for $1.45bn

02 May 2007  |  8315 views  |  0 cash

Citi has signed an agreement to acquire Bisys Group, New York-based provider of back office services to financial institutions, in an all-cash deal worth around $1.45 billion.

Under the agreement Bisys shareholders will receive merger consideration of $11.85 per share plus a $0.15 dividend at closing, which brings the total consideration of the deal to $1.47 billion. Bisys stock closed at $11.47 per share on Tuesday.

Citi says it will combine Bisys' fund and alternative investment services units - which provide administration and distribution services for mutual funds, hedge funds, private equity funds and other investment products - with its own operations.

But the US bank will sell off Bisys' retirement and insurance services divisions to private-equity group JC Flowers at closing of the transaction, in a deal that will cut the net cost of the acquisition to $800 million.

Commenting on the takeover, Michael Klein, co-president of Citi Markets and Banking, says: "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."

The deal is expected to close in the second half of the year and is subject to Bisys shareholder approval and regulatory approvals.

Bisys said last August that it was exploring "strategic alternatives" for te company after warning that its fiscal year 2007 earnings would be "substantially below" expectations.

In today's statement Robert Casale, Bisys chairman, interim CEO and president, says: "We are pleased at this outcome of the strategic alternatives process. We believe this deal is the best transaction for our shareholders and clients, while providing new opportunities to our employees."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Bisys warns of earnings shortfall; explores sale

Bisys warns of earnings shortfall; explores sale

11 August 2006  |  6094 views  |  0 comments
Bisys sells information services unit to Open Solutions for $470m

Bisys sells information services unit to Open Solutions for $470m

16 September 2005  |  6906 views  |  0 comments
Bisys to deliver eFunds payments processing with e-banking services

Bisys to deliver eFunds payments processing with e-banking services

01 October 2003  |  5465 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nl visit www.vasco.com

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
19591 views comments | 29 tweets | 42 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15236 views comments | 23 tweets | 32 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10999 views comments | 12 tweets | 23 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
9066 views comments | 14 tweets | 28 linkedin

Featured job

Find your next job