Citigroup agreed to sell its Alternative Investor Services business to SS&C Technologies, a provider of software and investment services to the finance industry, for about $425 million.
SS&C's clients manage more than $44 trillion, the Windsor, Connecticut-based company said Tuesday in a statement. The transaction is expected to be completed in the first quarter of next year, according to the statement.
Citigroup has been selling businesses that don't comply with new rules or fit with Chief Executive Officer Michael Corbat's strategy, which is aimed at affluent consumers and global corporations. The bank has already gotten rid of its hedge fund and private-equity division to comply with the Volcker Rule, which forbids banks from co-investing in the funds with clients beyond a minimal amount.
"Alternative Investor Services will become part of a known leader in financial services with a demonstrated track record," New York-based Citigroup said in a separate statement.
Citigroup said in January it would exit hedge-fund and wealth-management administration, moving those businesses into its Citi Holdings unit, which includes unwanted assets. The terms of the SS&C transaction aren't material, Citigroup said. The unit has 1,500 employees, according to the bank.