Koji Nagai, Nomura
"The deal represents Nomura's continuing ambition to put clients at the center of everything it does while connecting markets east and west."
New York - Asian investment bank Nomura has entered into a definitive agreement with American Century Investments and CIBC to acquire a non-controlling 41 percent economic interest in American Century.
Under the terms of the definitive agreement, Nomura, through a wholly owned subsidiary, will acquire the 41 percent stake from CIBC for approximately $1 billion. The transaction is expected to close in the first half of 2016 pending approval by regulatory authorities.
"Nomura is honored to enter into a long-term relationship with American Century - a proven and successful investment management company, and an organization which has stated its commitment to making a difference in the community through its Profits With a Purpose philosophy," said Koji Nagai, Nomura Group CEO. "Nomura's relationship with American Century will bring value to both firms and the deal represents Nomura's continuing ambition to put clients at the center of everything it does while connecting markets east and west," he added.
"Nomura respects the value of American Century's corporate philosophy and we believe that we are entering into a relationship with an outstanding company on the strength of our similar cultures, a shared investment outlook and a common set of values," said Kunio Watanabe, CEO of Nomura Asset Management.
"The strength of Nomura's asset management business in Asia complements American Century's own success in North America," said Jonathan Thomas, American Century President and Chief Executive Officer. "By leveraging our new relationship with Nomura, we'll be able to build upon the success of our global business and broaden the array of clients who can access our investment management capabilities," said Thomas. "As we welcome Nomura as a strategic investor, I want to thank CIBC for what proved to be a mutually beneficial relationship over the past four years. Going forward, CIBC remains one of our largest and most-valued clients."
The deal is intended to allow Nomura to access and leverage American Century's asset management capabilities to develop investment solutions for its retail and institutional clients internationally. It also helps the firm further diversify its business interests, giving Nomura an expanded investment footprint in the U.S. investment management market.
For American Century, the transaction provides the Kansas City-based firm with a strategic investor whose prominence in Japan, Asia and other parts of world is intended to help support its growth initiative to broaden non-U.S. distribution of the firm's products and services. Beyond the minority investment, Nomura and American Century Investments have agreed to strategically explore ways to enhance their asset management businesses globally.
Upon completion of the transaction, Nomura will name two representatives to American Century's 11-person board of directors. Nomura will also have a 10.1 percent voting interest.