Global Transaction Services, a business line of Citigroup Corporate and Investment Bank, today closed on AEGON Asset Management UK's transferal of its key back office functions, following successful due diligence and contract negotiations.
Originally announced on 8 March 2005, AEGON Asset Management UK entered into exclusive negotiations to transfer its fund accounting and administration functions to Citigroup Global Transactions Services. 75 AEGON specialist staff have become Citigroup employees, based in Citigroup's Edinburgh offices, the base for its leading third party administration (TPA) business in the UK.
This deal has allowed AEGON to continue to benefit from high levels of investment in administration systems and personnel. AEGON manages and administers over £40bn on behalf of retail, insured and institutional clients.
Andrew Fleming, Managing Director, AEGON Asset Management UK, says: "AEGON has built an enviable reputation for operational efficiency and we are committed to sustaining this excellence in the long term. During our discussions with Citigroup, it became clear there was an opportunity to secure a deal that was of benefit to all our stakeholders.
"We are very excited about our partnership with Citigroup, with whom we have worked closely in a number of areas over the years. They have demonstrated a sound understanding of our business needs and a clear vision for the future. Their ambition in this market, and their commitment to Edinburgh as the base for this expansion in the UK, makes them the ideal candidate to support our own ambitious business model.
"This is an excellent deal for all parties. Our administration team are enjoying a range of new career opportunities. And our clients are continuing to enjoy the highest quality investment administration, employing first-rate people and leading technology."
Francesco Vanni d'Archirafi, Chief Executive Officer, Global Transaction Services EMEA, Citigroup, says: "We greatly value our longstanding relationship with AEGON and are very excited to have taken this partnership to the next level. There is exceptional synergy in our organisations' focus on operational efficiency and top-class client delivery, and we have enjoyed welcoming AEGON's specialist team to our world-class funds administration operation in Edinburgh.
"This transaction further underlines Citigroup's strength in the funds administration business. It has also reinforced our commitment to Edinburgh as our base for UK market expansion and to being a full-service provider in the funds and insurance market."