CitiStreet Finds A Buyer
The cash-only acquisition of defined contribution business comes to $900 million.
May 2, 2008
ING, the Amsterdam-based insurance and financial services company, agreed to acquire CitiStreet, a defined contribution retirement plan and benefit service.
CitiStreet is presently owned by subsidiaries of State Street and Citigroup. ING will acquire the company for a consideration of €578 million, or $900 million, in a cash-only transaction that highlights ING’s eagerness to expand its defined contribution business.
The purchase will have not an impact ING's present share buyback program, the company said.
Kathleen Murphy, chief executive of ING US Wealth Management, said, “With ING's excellence and leadership in the education, small employer, government and healthcare markets, and CitiStreet's excellence and leadership across all employer markets, we are creating a new value proposition that will span the full spectrum of the defined contribution and benefits servicing marketplace.”
CitiStreet employs about 3,700 and controls assets under administration over $230 billion.
ING employs about 120,000. The company’s shares closed on Thursday at $38.33.
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