ING Group agreed to acquire CitiStreet, the record-keeping business jointly owned by Citigroup Inc. and State Street Corp., for $900 million, said ING spokeswoman Deborah Pont. CitiStreet provides record-keeping and administrative services, advice programs and other benefit plan services primarily in the U.S. The combined businesses will give ING $351 billion in assets under management and administration, serving 14 million defined contribution plan participants. ING will finance the acquisition internally. The transaction is expected to close in the third quarter.
ING will maintain CitiStreets Quincy, Mass., offices and will work to keep most of the staff, according to a source familiar with the deal. Citigroup was advised by State Street and Goldman Sachs on the deal, while ING was advised by Lazard.