Citigroup has announced that it has reached a definitive agreement to sell its institutional prepaid card services to Wirecard.

The operations of prepaid card services, including its approximately 120 employees, will be transferred to Wirecard upon closing.

Citi Holdings CEO Francesco Vanni d’Archirafi said: "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. Today’s transaction marks yet another important milestone in our strategy to continue the reduction of assets and businesses in Citi Holdings."

Subject to obtaining regulatory approvals and other customary closing conditions, the transaction is anticipated to close in the fourth quarter of 2016.

Citi’s Institutional Clients Group advised Citi on this transaction. Skadden, Arps, Slate, Meagher & Flom LLP, Sidley Austin LLP and Schwartz & Ballen LLP served as legal advisors to Citigroup.