LONDON – Nuveen LLC, the investment arm of Teachers Insurance and Annuity Association of America (TIAA), said on Thursday its newly formed subsidiary Pantheon LLC will acquire UK asset manager Schroders plc in a recommended cash deal valuing the company at up to £9.9 billion.
Under the terms of the agreement, Schroders shareholders will receive 590 pence per share in cash, plus permitted dividends of up to 22 pence per share if declared before completion, bringing the total value to 612 pence per share. The offer represents a premium of 29% to Schroders’ closing price of 456 pence on Feb. 11, 42% to its three-month average, and 55% to its 12-month average.
If dividends are paid in full, the transaction values Schroders at £9.9 billion and implies a multiple of 17 times adjusted operating profit after tax for 2025. Bidco has already secured irrevocable undertakings for about 42% of Schroders’ shares from its principal shareholder group and directors.
The deal will create one of the world’s largest active asset managers, with nearly $2.5 trillion in assets under management across institutional and wealth channels. Schroders’ brand will be retained, with London serving as the combined group’s non-U.S. headquarters and largest office, employing around 3,100 professionals.
Nuveen CEO William Huffman said the transaction would “unlock new growth opportunities for wealth and institutional investors around the world by giving our leading, differentiated public-to-private platform a broader global presence.”
Schroders Chair Dame Elizabeth Corley called the deal “an attractive premium in cash to our shareholders, reflecting the value of our business and its future prospects,” while CEO Richard Oldfield said the tie-up would “significantly accelerate our growth plans to create a leading public-to-private platform with enhanced geographic reach.”
The transaction, subject to regulatory approvals, is expected to close in the fourth quarter of 2026.