Citi to Acquire BISYS

Under the deal, Citi would merge BISYS’ fund services and alternative investment services group with its own operations.BISYS, a Roseland-based provider of outsourcing products and services for the financial services sector, today announced that it has agreed to be acquired by New York City-based financial services giant Citi (NYSE: C), in a transaction valued at approximately $1.45 billion. BISYS shareholders would receive $12.00 in cash per share, consisting of $11.85 per share to be paid by Citi at the closing of the acquisition and a special dividend of $0.15 per share in cash payable by BISYS.

Citi would merge BISYS’ fund services and alternative investment services groups, which provide administration and distribution services for mutual funds, hedge funds, private equity funds and other investment products, with its own operations.

Simultaneously, JC Flowers, a New York City-based private equity firm, would acquire BISYS’ insurance services group and retirement services business from Citi. JC Flowers will combine BISYS’ commercial insurance services group with its existing commercial insurance business, Crump.