Japanese investment bank and brokerage group Nomura said Tuesday it will buy the U.S. and European public asset management businesses of Australian investment banking company Macquarie for $1.8 billion.
The all-cash deal is expected to close by the end of this year, subject to regulatory approvals.
Nomura said it has “identified global asset management as a key strategic growth priority for the organization,” adding that this would increase the assets under management of its investment management division to $770 billion, up from the $590 billion currently.
Macquarie said it will retain its public investments business in Australia, where it will continue to service institutions, governments and individual investors.
As part of the transaction, Macquarie and Nomura have also agreed to collaborate on product and distribution opportunities.
This includes Nomura being a U.S. wealth distribution partner for Macquarie, which will see clients in the U.S. still having access to Macquarie’s alternative investment capabilities.
Nomura has committed to providing seed capital for a range of alternative funds tailored for U.S. wealth clients, the two companies said.
Nomura said that the impact of the transaction on the company’s financials will be “minimal,” and both companies will continue to operate separately and independently until the deal closes.
Nomura Holdings CEO Kentaro Okuda said the company does not intend to make any funding or financing activities directly relating to the deal, Reuters reported.
He also added that the transaction “should be durable against the volatility of the market,” saying the deal had a “very prudent due diligence process.”
Nomura is among Japan’s largest brokerages and investment firms with a presence in about 30 countries.
Shares of Nomura in Tokyo were down 0.15% on Tuesday, while Macquarie’s stock in Australia climbed 0.32%.
