Nationwide Mutual Insurance Company’s Nationwide Financial Services Inc. unit has agreed to higher terms for a previously announced deal.
Under the agreement, Nationwide Financial, Columbus, Ohio, will buy the retail operations of NWD Investment Management Inc., Philadelphia, for $225 million in cash, plus the value of tangible shareholders’ equity on the balance sheet at closing. That figure represents a $25 million increase over preliminary terms for purchasing NDW, which Nationwide had announced in December, the company says.
Nationwide says the increase in the offer is due to the value of additional tax benefits from the deal that it had not previously identified.
NWD manages around $25 billion of mutual fund assets, of which about $13 billion is subadvised by third parties.
Nationwide says it expects to move all of NWD’s retained assets to subadvisors.
The deal does not include NWD’s institutional asset-management businesses, consisting of Morley Financial Services Inc., NorthPointe Capital L.L.C., Riverview Alternative Investment Advisors L.L.C. and Nationwide Separate Accounts L.L.C.