The wholesale unit of outsource solutions firm BISYS will be sold to Dallas-based wholesale broker Crump Group Inc. for $800 million, it was announced today.
A description of the deal was released by New York-based Citi, which is acquiring Roseland, N.J.-based BISYS for $1.47 billion and will sell the wholesale unit when the purchase is completed.
BISYS' wholesale arm will go to J.C. Flowers, the private equity firm which purchased Crump in 2005 from Marsh brokerage.
According BISYS, the wholesale business, which includes life insurance and commercial property-casualty products, will be sold to Flowers by Citi after it makes the acquisition of BISYS. The sale to Flowers also includes BISYS' retirement services. BISYS said the insurance services will become part of Crump.
Citi said the sale of the BISYS units to Flowers would amount to approximately $800 million.
The deal is expected to close in the second half of this year and is subject to BISYS shareholder approval and regulatory approvals in the United States, Ireland and Bermuda.
A representative from Crump said the firm does not have a comment at this time.
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