Nomura Agrees to Purchase a 41 Percent Stake in American Century Investments

21 Dec, 2015, 08:00 ET from Nomura

NEW YORK, Dec. 21, 2015 /PRNewswire/ -- Nomura, Asia's global investment bank, announces that it has entered into a definitive agreement with American Century Investments ("American Century") and CIBC to acquire a non-controlling 41 percent economic interest in American Century.

Under the terms of the definitive agreement signed today, 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.

Nomura

Nomura is an Asia-based financial services group with an integrated global network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its three business divisions: Retail, Asset Management, and Wholesale (Global Markets and Investment Banking). Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership. Nomura's subsidiaries in the US include Nomura Securities International, Inc. (a member of SIPC) and Nomura Corporate Research and Asset Management Inc. For further information about Nomura, visit www.nomura.com

American Century Investments

American Century Investments is a leading privately held investment management firm, committed to delivering superior investment performance and building long-term client relationships since its founding in 1958.  Based in Kansas City, Missouri, the firm offers a broad, diversified set of actively managed investment capabilities and solutions to clients across the globe.  Delivering investment results to clients enables American Century Investments to distribute over 40 percent of its profits to the Stowers Institute for Medical Research, a 500-person, non-profit basic biomedical research organization. The Institute is the controlling owner of American Century Investments and has received dividend payments totaling over $1 billion since 2000. For more information about American Century Investments, visit www.americancentury.com

About the Stowers Institute for Medical Research

The Stowers Institute for Medical Research is a non-profit, basic biomedical research organization dedicated to basic research – the critical first step in the quest for new medical diagnostics, therapies and treatments. Jim Stowers, founder of American Century Investments, and his wife, Virginia, opened the Institute in 2000. Since then, the Institute has spent over one billion dollars in pursuit of its mission.  Currently, the Stowers Institute is home to 500 researchers and support personnel, over 20 independent research programs, and more than a dozen technology development and core facilities.

SOURCE Nomura



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