Nomura Group announced Monday it reached a definitive agreement to acquire Toronto-based CIBC's non-controlling 41% economic interest in American Century Investments.
Under the agreement, signed Monday, Nomura will acquire the stake for roughly $1 billion, subject to regulatory approvals, said a news release. The deal is expected to close in the first half of 2016.
Once the acquisition is completed, Nomura will name two representatives to American Century's 11-person board of directors. The 41% economic stake will give Nomura a 10.1% voting interest.
Senior executives from Nomura and American Century, in the release, predicted the tie-up would help both firms extend their respective geographic footprints.
Jonathan Hodgkinson, a New York-based spokesman for Nomura, confirmed the agreement regarding the 41% stake, but declined further comment. American Century spokesman Chris Doyle couldn't immediately be reached for comment.
The controlling owner of American Century will remain the Stowers Institute for Medical Research, a non-profit basic biomedical research organization. James Stowers Jr. founded American Century in 1958 and in 1994 co-founded the Stowers Institute for Medical Research. American Century had $149.3 billion in assets under management as of Nov. 30.
CIBC purchased the 41% stake from J.P. Morgan Chase four years ago for about $850 million; American Century had $101.3 billion in AUM as of Sept. 30, 2011.