CHICAGO--(BUSINESS WIRE)--

Northern Trust Corporation announced today that it has reached an agreement with Citadel to bring Omnium® technology development in-house – including a team of key development professionals as well as software development rights for its Omnium® technology platform.

The agreement gives Northern Trust greater control over technological enhancements. Additionally, the transaction enables deeper collaboration between Northern Trust’s operations professionals and the team of developers to provide innovative solutions for alternative fund managers, asset managers, institutional investors and family offices worldwide.

Northern Trust acquired Citadel’s hedge fund administration business (Omnium®) in 2011 and licensed their middle and back office investment technology. That business, now known as Northern Trust Hedge Fund Services, has grown from $70 billion in assets under administration to more than $350 billion in assets under administration, across more than 130 clients. Northern Trust Hedge Fund Services has approximately 1,200 employees worldwide.

“We are excited to have the opportunity to bring this technology development team to Northern Trust,” said Peter Cherecwich, president of Northern Trust Corporate & Institutional Services. “Their deep expertise has been a key contributor to our growth, and has been critical to our success in delivering solutions to our clients – which are among the world’s most sophisticated asset managers and institutional investors.”

Gerald Beeson, Chief Operating Officer of Citadel, said, “Citadel and Northern Trust have transformed the hedge fund administration industry through a combination of operational excellence and Citadel’s world-class technology. This change in our technology relationship with Northern Trust will enable each organization to better focus on their core strategies as both firms continue to experience significant growth.”

Northern Trust will continue to provide middle office and fund administration services for Citadel’s funds.

Peter Sanchez, CEO of Northern Trust Hedge Fund Services, said, “We look forward to integrating the technology team’s formidable talent directly with our expert operations. This integrated partnership will help us build on our record of innovation and client service.”

The transaction is expected to close in the first half of 2018, subject to customary closing conditions included in the definitive binding agreement executed by the parties.

Forward-Looking Statements

This release includes forward-looking statements (as that term is defined in the Private Securities Litigation Reform Act of 1995) concerning an agreement entered into by Northern Trust to acquire technology and the right to acquire software development professionals from Citadel, including certain statements related to future results and intentions, and expectations regarding the impact of such acquisition on Northern Trust. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: the ability of Northern Trust and Citadel to satisfy closing conditions; applicable market and industry conditions; Northern Trust’s ability to implement the technology successfully and realize the benefits of the acquisition; changes in laws and regulations; and other risks identified in Northern Trust’s most recent filing on Form 10-K and other SEC filings, all of which are available on Northern Trust's website. Northern Trust does not undertake to update its forward-looking statements.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 23 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2017, Northern Trust had assets under custody/administration of US$9.7 trillion, and assets under management of US$1.1 trillion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/disclosures.

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