Northwestern Mutual has reached an agreement to sell Russell Investments to the London Stock Exchange Group (LSEG) for US$2.7 billion ($2.9 billion).
“The acquisition of Russell is another significant milestone for LSEG,” says Xavier Rolet, CEO of LSEG. “It sits squarely with our diversification strategy, builds on one of our core strengths in intellectual property and provides another key driver of growth by growing our presence in the U.S., the largest global financial services market.”
Russell oversees almost US$260 billion in assets, primarily for large institutional investors such as pension funds. The firm also maintains stock indexes such as the Russell 2000. And Russell mutual funds are available to retail investors.
“The proceeds from the sale will cap off what has proven to be a good investment for Northwestern Mutual,” says John Schlifske, chairman and CEO of Northwestern Mutual. “When you look at the income it produced over all that time and this sale price, you see a great example of how we build value for policy owners of our mutual company.”
The sale will be finalized later this year, pending regulatory and LSEG shareholder approvals and satisfaction of other closing conditions.
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