Citi and State Street to Sell CitiStreet for $900 Million
May 02 2008 - 1:32AM
Business Wire
Citigroup Inc. (NYSE: C) and State Street Corporation (NYSE: STT)
today announced that they have entered into a definitive agreement
to sell CitiStreet, a benefits servicing business, to ING Group in
an all-cash transaction valued at $900 million. CitiStreet is a
joint venture formed in 2000, which is owned 50 percent each by
Citi and State Street. The acquisition is expected to close,
pending customary closing conditions, by the end of the third
quarter of this year. CitiStreet, a leading benefits services
company in the United States and Australia, provides a range of
recordkeeping and administrative services to more than 16,000 plans
and 12 million participants. Headquartered in Quincy,
Massachusetts, CitiStreet has more than $262 billion in assets
under administration as of March 31, 2008 and approximately 3,700
employees. �CitiStreet is an industry leader, but retirement plan
record keeping and administrative services are not strategic
priorities for us,� said Charles D. Johnston, President of Citi
Global Wealth Management. �Smith Barney remains committed to
serving corporate and business clients with retirement plans and
other institutional offerings and we will work closely with ING and
State Street to ensure an orderly transition for clients and
employees.� �In the eight years since its launch, CitiStreet has
had steady growth and become a leading benefits servicing
provider,� said Ronald E. Logue, Chairman and Chief Executive
Officer, State Street Corporation. �This transaction recognizes the
strong business we built while enabling us to focus resources on
businesses that are more closely aligned with our long-term
strategy.� Today�s action is consistent with Citi CEO Vikram
Pandit�s focus on divesting non-core assets and strategically
reallocating capital throughout the organization. The action
enables State Street to more effectively pursue opportunities that
will continue to build on its global franchise focused on serving
institutional investors. Citi is advised on this transaction by its
Institutional Clients Group and State Street is advised by Goldman,
Sachs & Co. Citi Citi, the leading global financial services
company, has some 200 million customer accounts and does business
in more than 100 countries, providing consumers, corporations,
governments and institutions with a broad range of financial
products and services, including consumer banking and credit,
corporate and investment banking, securities brokerage, and wealth
management. Citi's major brand names include Citibank,
CitiFinancial, Primerica, Smith Barney, Banamex, and Nikko.
Additional information may be found at www.citigroup.com or
www.citi.com. State Street Corporation State Street Corporation
(NYSE: STT) is the world's leading provider of financial services
to institutional investors including investment servicing,
investment management and investment research and trading. With $15
trillion in assets under custody and $2 trillion in assets under
management at March 31, 2008, State Street operates in 26 countries
and more than 100 geographic markets worldwide. For more
information, visit State Street�s web site at www.statestreet.com.
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