AEGON Asset Management UK Plans to Transfer Key Back Office Functions to Citigroup Global Transaction Services
AEGON Asset Management UK enters into exclusive negotiations to transfer fund accounting and administration functions to Citigroup Global Transactions Services, based in Edinburgh.
Proposed deal sees 75 AEGON staff become Citigroup employees from August 2005.
Edinburgh & London, 8 March 2005– AEGON Asset Management UK today announces it has entered into exclusive negotiations to transfer a number of its key back office functions to Citigroup Global Transaction Services.
The proposed agreement, which is subject to further due diligence and contract negotiations, will see AEGON Asset Management transfer its fund accounting and administration functions to Citigroup from August 2005.
It is expected that around 75 staff will transfer from AEGON to Citigroup. They will be based in Citigroup's Edinburgh offices, the base for its third party administration (TPA) business in the UK.
The proposed deal will allow AEGON to continue to benefit from high levels of investment in administration systems and personnel. AEGON manages around £35bn on behalf of retail, insured and institutional clients.
Citigroup will acquire a highly regarded specialist team, as well as cementing its position as one of the UK's leading TPA providers.
Colin McLatchie, Managing Director, AEGON Asset Management UK, says:
"AEGON has built an enviable reputation for operational efficiency and we are committed to sustaining this excellence in the long term. During our discussions with Citigroup, it became clear there was an opportunity to secure a deal that was of benefit to all our stakeholders.
"We are very excited about developing our partnership with Citigroup, who we have worked closely with in a number of areas over the years. They have demonstrated a sound understanding of our business needs and a clear vision for the future. Their ambition in this market, and their commitment to Edinburgh as the base for this expansion in the UK, makes them the perfect candidate to support our own ambitious business model.
"This is an excellent deal for all parties. Our administration team will enjoy a range of new career opportunities. And our clients will continue to enjoy the highest quality investment administration, employing first-rate people and leading technology."
Francesco Vanni d'Archirafi, Chief Executive Officer at Citigroup Global Transaction Services EMEA, says:
"We greatly value our longstanding relationship with AEGON
and are very excited about taking this partnership to the next level.
There is exceptional synergy in our organisations' focus on operational
efficiency and top-class client delivery, and we look forward to
specialist team to our world-class funds administration operation in Edinburgh.
"This transaction underlines Citigroup's strength in the funds administration business. It also reinforces our commitment to Edinburgh as our base for UK market expansion and to being a full-service provider in the funds and insurance market."
Citigroup (NYSE: C), the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at: www.citigroup.com.
About Citigroup Global Transaction Services
Citigroup® Global Transaction Services is a leading provider of integrated cash management, trade, fund and securities services for corporations, financial institutions, intermediaries and governments around the world. With over $ 121 billion in average liability balances, more than $7.9 trillion in assets under custody and the largest proprietary branch network, Citigroup’s award-winning operating systems and Internet-based delivery channels enable clients to manage and monitor working capital and investments more efficiently, streamline transaction processing cycles, and re-engineer receivables and payment processes. Citigroup® Global Transaction Services provides clients with access to Citigroup’s full range of capabilities and solutions along with an on-the-ground presence and in-depth knowledge of more than 90 local markets. For additional information, see www.transactionservices.citigroup.com.
About AEGON asset Management
AEGON Asset Management includes AEGON Asset Management UK plc (No. 113505), and AEGON Investment Management UK ltd (No. 212159). Both are registered in Scotland and have their Registered Offices at AEGON House, Edinburgh Park, Edinburgh, EH12 9SA. AEGON Asset Management UK plc is authorised and regulated by the Financial Services Authority.
AEGON Asset Management was advised by specialist consultancy CSTIM limited.