The deal for Seattle, Wash.-based asset management firm Frank Russell Co., between the London Stock Exchange Group plc (LSE) and U.S. insurer Northwestern Mutual, has been completed, the firms said Wednesday.
The LSE says that after satisfying all of the outstanding conditions attached to the deal, the exchange has completed the deal to buy Russell from Northwestern Mutual for US$2.7 billion.
“Today marks a significant step for the group. Russell significantly enhances LSEG’s presence in the U.S., the world’s largest global financial services market, further expanding our global footprint and diversifying our customer and product base,” said Xavier Rolet, CEO of the LSE.
The exchange reports that a comprehensive review of Russell’s investment management business “is making good progress and is on track to be completed early in 2015.”
Northwestern says that the proceeds from the sale will boost the 2014 financial results of the Milwaukee-based company.
“Russell has been a good investment for us,” said John Schlifske, chairman and CEO of Northwestern Mutual. “Russell’s operating results have made significant contributions to our financial results over the years. When you look at this sale price and the income produced for us since we bought Russell in 1999, you get a rate of return well in excess of equity indices over that period.”
Frank Russell Co. is the parent company of Toronto-based Russell Investments Canada Ltd.