Nationwide Corp., a unit of Nationwide Financial Services (NFS), announced late Monday that it would buy the Philadelphia-based retail operations of NWD Investment Management.
According to the terms of the deal, Columbus, Ohio-based Nationwide will acquire the company for $225 million in cash, plus the value of tangible shareholders' equity on the balance sheet at closing.
The operations that Nationwide is buying manage about $25 billion of mutual fund assets, of which about $13 billion is sub-advised by third parties. The deal is expected to be completed during the second quarter of this year.
Nationwide Financial will also acquire Gartmore Mutual Fund Capital Trust, which acts as investment adviser to two NWD Investment Management-affiliated mutual funds: Gartmore Mutual Funds and Gartmore Variable Insurance Trust.The deal doesn't include NWD's institutional asset-management businesses, although Nationwide says it will review its strategic options for these remaining businesses.