By Lisa Kerner
Charlotte, N.C., May 2 - Citi agreed to acquire Bisys Group, Inc. for $11.85 per share, plus a special dividend of $0.15, in a transaction valued at $1.47 billion.
At the transaction close, slated for the second quarter of 2007, Citi will sell Bisys' retirement and insurance services divisions to affiliates of J.C. Flowers & Co. LLC, a New York private equity firm. The resulting net cost of the transaction to Citi will be about $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," Michael Klein, co-president of Citi Markets & Banking said in a company news release.
Citi's Investment Bank acted as adviser to the New York-based global financial company.
Bisys is a Roseland, N.J.-based provider of outsourcing services to investment firms, insurance companies and banks.
| Acquirer: | Citi
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| Target: | Bisys Group, Inc.
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| Transaction total: | $1.47 billion
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| Price per share: | $11.85, plus $0.15 special dividend
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| Announcement date: | May 2
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| Expected closing: | Second quarter of 2007
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| Stock price for target: | NYSE: BSG; $11.47 on May 1
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