Citigroup, State Street To Sell CitiStreet For $900 Million To ING Group

May 3, 2008 12:29 a.m. EST

New York, NY (AHN) - Citigroup and State Street Corp. have entered into an agreement to sell CitiStreet to ING Group in an all-cash transaction valued at $900 million, the companies announced Friday.

CitiStreet is a joint venture formed in 2000 that is owned 50 percent each by Citigroup and State Street.

The acquisition is expected to close by the end of the third quarter of this year, according to a press statement.

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, Mass., CitiStreet administers more than $262 billion in assets and has approximately 3,700 employees, the statement added.

"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.

"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 of State Street.