Nuveen Investments to be Purchased by Private Equity Group

Nuveen Investments has agreed to be acquired by an investor group majority-led by Chicago-based Madison Dearborn Partners, LLC (MDP).
Nuveen, a provider of diversified investment services to institutional and high-net-worth investors, announced the $6.3 billion transaction. The company’s stockholders will receive $65 per share, a premium of 20% over the closing price of the shares on June 19, 2007.
On July 1, Nuveen’s president and a director since 1999, John Amboian will replace Timothy Schwertfeger as Chief Executive Officer. Schwertfeger will become the non-executive chairman of the Nuveen Investments corporate board and will remain the chairman of the Nuveen fund board.
“This transaction by MDP, with an anticipated equity participation by management, will provide Nuveen Investments the opportunity to accelerate our development of new investment capabilities, products and distribution channels, and help us attract and retain top industry talent,’ said Schwertfeger, in a news release. “We believe that we will be able to develop even further our institutional and high-net-worth presence, our mutual fund business and our structured product expertise. Our highest commitment remains to continually meet the needs of our institutional and individual clients as well as the consultants and financial advisors who serve them.’
The merger, which was approved by Nuveen’s Board of Directors, is expected to be completed by the end of the year but, under the agreement, Nuveen may solicit proposals from third parties through July 19, 2007, something it said its Board of Directors intends to do.