The ING Group has reached an agreement to acquire CitiStreet LLC, one of the largest retirement plan and benefit service and administration organizations in the domestic defined contribution (DC) marketplace, for $900 million. The deal will be financed entirely from existing internal resources.
CitiStreet is jointly owned by Citigroup, Inc. and State Street Corporation. According to ING, the purchase would make it the third-largest DC provider in the U.S. based on assets under management and assets under administration with ($351 billion), and the second largest based on plan participants with more than 14 million individuals.
"This acquisition is consistent with ING’s focused strategy to support the strong organic growth of the group with suitable add-on acquisitions aligned with its core banking, investments, life insurance, and retirement services growth businesses," said Michel Tilmant, chairman of the executive board of ING Group.
CitiStreet provides recordkeeping and administrative services, counseling and advice programs, and other benefit plan services primarily in the U.S. It has approximately 3,700 employees, with the majority located domestically. The transaction also includes a defined benefit/pension business and a health and welfare business in the U.S. and a retirement services business in Australia.