By Avi Mizrahi
Citigroup (NYSE:C) today announced that it has reached a definitive agreement to sell its Alternative Investor Services business, which comprises Hedge Fund Services and Private Equity Fund Services, to SS&C Technologies Holdings, Inc, for $425 million.
Citi says that this transaction is a positive outcome for the Alternative Investor Services, including its employees and clients. "As a result of this deal, Alternative Investor Services will become part of a known leader in financial services with a demonstrated track record of delivering high-quality products and services to its clients."
Founded in 1986, SS&C (Nasdaq:SSNC) is a global provider of investment software-enabled services and software focused on the global financial services industry. It is one of the leading American fund administrators for both onshore and offshore hedge funds, fund of funds and private equity funds.
"This acquisition is solidly in line with SS&C's strategy of combining organic growth with select, high quality acquisitions. Citi Alternative Investor Services clients can be assured of SS&C's commitment to continue to serve them with world class people, process and technology. We are excited about adding these talented employees and look forward to the ideas and passion they will bring to our organization,” commented Bill Stone, Chairman and Chief Executive Officer, SS&C Technologies.
The transaction is subject to approvals by relevant regulatory authorities and is expected to close in the first quarter of 2016. The entire operations of this business, including approximately 1,500 employees, will be transferred to SS&C upon closing.
In May 2015, Citigroup sold its $30 billion a month margin FX trading client book, from CitiFX Pro, to two online brokers, FXCM and Saxo Bank.
