Citigroup Inc (NYSE: C) disclosed that it struck a definitive agreement to divests its institutional Prepaid Card Services to Wirecard AG. According to the company, the operations of Prepaid Card Services would be transferred to Wirecard upon closing. It included about 120 employees.
Citigroup indicated the transaction would close in the fourth quarter of the current year subject to regulatory approvals, as well as customary closing conditions. The financial terms were not disclosed.
Citi Holdings CEO, Francesco Vanni d'Archirafi, commented, "This transaction is a positive outcome for our clients and employees of Citi's Prepaid Card Services which will become part of an industry leader that is poised for growth. We are especially pleased that all Citi employees supporting this business will have the opportunity to join such an innovative company."
He added, "Today's transaction marks yet another important milestone in our strategy to continue the reduction of assets and businesses in Citi Holdings."
The stock traded 2.08 percent higher on Wednesday.
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