Forbes- Citigroup Inc. said Wednesday it agreed to buy Bisys Group Inc. in a $1.45 billion deal meant to bolster the New York-based bank’s services catering to private equity investors, mutual fundsand hedge funds.<\/p>\n
Bisys, based in Roseland, N.J., performs accounting and regulatory and legal compliance services for more than 3,000 mutual funds and 1,600 alternative investment funds that collectively manage roughly $700 billion. The company earned $232.2 million last year.<\/p>\n
Under the deal, Citigroup will buy Bisys for $1.45 billion, or $11.85 per share. At the deal’s completion, Bisys will pay a 15 cent dividend, bringing the total deal value to Bisys shareholders to $12 per share. The stock closed at $11.47 Tuesday, implying a 4.6 percent premium for the deal.<\/p>\n
Citigroup will break up Bisys’ insurance and retirement services businesses and sell them to J.C. Flowers & Co., a private equity fund. After that sale, the total cost of the Bisys deal to Citigroup will be roughly $800 million.<\/p>\n