ING Gains from Citigroup Sub-Prime Woes
May 5, 2008
ING Group has agreed to acquire benefits services provider CitiStreet from Citigroup and State Street Corporation for $900 million. Citigroup is liquidating assets to raise capital to offset losses due to the sub-prime lending crisis.
The acquisition will make ING the third-largest defined contribution business in the U.S., with $351 billion under management, as well as the second largest DC plan provider in terms of participants, with about 14 million.
“This acquisition significantly expands our existing footprint in our retirement services businesses in the U.S. and will help drive long-term growth in the US retirement savings marketplace,” said Tom McInerney, CEO for ING Insurance Americas.
“ING’s financial strength, investment management capabilities, retirement income offerings, and strong global brand make ING an ideal partner for CitiStreet’s existing plan sponsors and plan participants,” he added.
Quincy, Mass.-based CitiStreet has approximately 3,700 employees and $262 billion under management. The deal includes a defined benefit/pension business in the U.S., a health and welfare business in the U.S. and a retirement services business in Australia.
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