British money manager Schroders is being taken over by US asset manager Nuveen for £9.9 billion, in one of Europe's largest fund management deals that will mark the end of an era for the 222-year old firm.
The acquisition, which will see the founding family sell up, will create a combined group with $2.5 trillion of assets under management.
Schroders' shares jumped 29% in morning trade.
The deal would represent the largest asset management acquisition on record in Europe, Middle East and Africa, according to LSEG data.
"This is a massive transformational step for both firms," Bill Huffman, CEO of Nuveen, told Reuters, adding the deal gave it a global footprint and that Nuveen was open to further deals to grow.
The asset management industry has seen consolidation as larger US rivals like BlackRock and Vanguard sell cheaper index-trackers and other passive products, forcing smaller, active stock-pickers like Schroders to combine to compete.
Schroders, one of Europe's most storied money managers, grew from financing transatlantic trade in the 19th century to becoming Britain's biggest standalone asset manager. Its shares have sunk 30% over the past five years, though they have clawed back some ground over the past year under CEO Richard Oldfield.
The company's founding family - which still has two seats on the board - will sell their 42% stake as part of the sale, Oldfield told Reuters.
Bankers and analysts say mid-sized asset management firms such as Schroders, and rivals including Aberdeen, are vulnerable to bigger suitors or a call to break up their businesses, from cash-rich US businesses.
"The deal also has a positive readacross for the rest of the sector, as it acts as a statement in the value of traditional asset management, when many of the larger deals in recent times have been more defensive in nature," RBC analysts said in a note.
Asset management M&As also have a chequered history, with several struggling over integration issues.
Aberdeen Asset Management and Standard Life agreed to combine in 2017 but since then, the shares are down about 50%.
The deal also highlights how UK stocks that have been trading at a discount to both the US and European markets, have drawn takeovers. Last year the UK was the second most- targeted market for M&A after the US.
The combined group's $2.5 trillion in assets under management puts it slightly below Europe's biggest fund manager, Amundi, but way below the US behemoths BlackRock, Vanguard and State Street.
Schroders' shareholders will receive 590 pence per share in cash plus permitted dividends of up to 22 pence, valuing the company at 612 pence per share - a 34% premium to yesterday's closing price, according to LSEG data.
BNP Paribas was sole financial adviser to Nuveen, with Wells Fargo and Barclays advising Schroders.
Separately, Schroders reported adjusted operating profit of £756.6m for 2025, up 25% from a year earlier.
Oldfield will continue to lead Schroders after the deal closes and London will remain its biggest office.
