International financial services company NN Group has agreed to sell NN Investment Partners (NN IP) to Goldman Sachs Group for approximately €1.7 billion in total proceeds.
Expected to close by the end of the first quarter of 2022, the transaction involves a base purchase price of €1.515 billion, a ticking fee, and excess capital to be distributed in the form of a dividend before completion. NN IP staff will be joining Goldman Sachs Asset Management when the deal is finalised.
Meanwhile, the two camps are also entering into a 10-year strategic partnership under which the combined company will continue to provide asset management services to NN Group.
“This acquisition allows us to accelerate our growth strategy and broaden our asset management platform,” said Goldman Sachs chair and chief executive David Solomon. “NN Investment Partners offers a leading European client franchise and an extension of our strength in insurance asset management.
“Across NN Investment Partners’ offerings they have been successful in integrating sustainability which mirrors our own level of ambition to put responsible investing and stewardship at the heart of our business. We look forward to partnering with the team at NN Investment Partners as we focus on delivering long-term value to our clients and our shareholders.”
Satish Bapat, who will continue to lead NN IP in his capacity as CEO, has stepped down from his role as a member of NN Group’s management board.
Commenting on the sale, NN Group boss David Knibbe stated: “NN Group and NN IP have a long-standing and successful shared history. We value this strong and constructive relationship that we have, and we look forward to further building on it in a new form. This transaction brings together two international asset managers, each with many decades of investment experience.
“We have found a strong and professional partner in Goldman Sachs, providing an environment in which our NN IP colleagues can continue to thrive, while the combined investment expertise and scale will enhance the service offering to NN IP’s clients, including NN Group. This transaction will also give NN Group greater optionality to develop a broader range of asset management propositions for our customers.”
Based in The Hague, NN IP employs more than 900 professionals in 15 countries.
