Nomura to buy 41% stake in American Century Investment

Japanese financial services group Nomura Holdings has agreed to buy a non-controlling 41% stake in privately-held investment firm American Century Investment from Canadian Imperial Bank of Commerce for approximately $1bn (£670m).

The transaction, which is intended to allow Nomura to access and leverage American Century's asset management capabilities to develop investment solutions for its retail and institutional clients internationally, is expected to close in the first half of next year.

Nomura’s chief executive officer, Koji Nagai, said: "Nomura is honoured to enter into a long-term relationship with American Century – a proven and successful investment management company, and an organization which has stated its commitment to making a difference in the community through its Profits With a Purpose philosophy.

"Nomura's relationship with American Century will bring value to both firms and the deal represents Nomura's continuing ambition to put clients at the center of everything it does while connecting markets east and west.”

Nomura said the deal helps the firm further diversify its business interests, giving it an expanded investment footprint in the US investment management market.

For Kansas City-based American Century, it provides a strategic investor whose prominence in Japan, Asia and other parts of the world is intended to help support its growth initiative to broaden non-US distribution of the firm's products and services.