September 28, 2016
Nationwide Agrees to Acquire Jefferson National
Acquisition will expand distribution through registered investment advisors
Columbus, OH - Nationwide, one of the largest providers of insurance and financial services products in the U.S., announced today that it has entered into a definitive agreement to purchase Louisville, Ky.-based Jefferson National, an industry-leading distributor of tax-advantaged investing solutions for registered investment advisors (RIAs), fee-based advisors and the clients they serve.
The acquisition will expand Nationwide’s ability to sell financial service products through Jefferson National’s network of RIAs and fee-based advisors and increase each organization’s ability to serve more customers in the ways advisors and customers prefer to do business.
“Partnering with the Jefferson National team will enable Nationwide to expand our distribution footprint and meet the needs of investors and retirement savers who want to do business in a fee-based advisor environment after implementation of the DOL fiduciary standard,” said Nationwide CEO Steve Rasmussen. “This will complement our strong brokerage distribution channel and allow customers to do business with us in the manner they prefer. This new partnership is mutually beneficial to both Nationwide and Jefferson National, providing opportunities for growth in ways we couldn’t achieve individually.”
Jefferson National currently serves nearly 4,000 RIAs and fee-based advisors with its innovative product Monument Advisor, the industry’s first1 Flat-Fee2 Investment-Only Variable Annuity (IOVA). This transaction will allow Jefferson National to considerably expand and enhance its ability to serve RIAs and fee-based advisors with a far greater variety of value-added products and services that meet the practice model of this growing channel.
“Nationwide is a powerhouse in the insurance and financial services industry, and we are thrilled by the incredible opportunity of our new agreement, built on a shared commitment to meet the needs of advisors and their clients with transparency, choice and greater value,” said Mitchell H. Caplan, CEO of Jefferson National. “Both Jefferson National and Nationwide seek to provide top-quality products and services. This partnership allows us to serve a growing number of RIAs, fee-based advisors and their clients with an expanded offering of innovative investing solutions built to fit the way RIAs and fee-based advisors run their practice.”
Jefferson National not only brings a strong advisor base, it also offers sophisticated technology and marketing capabilities to help clients accumulate more wealth and reach their financial goals. As of June 30, 2016, the company reported $4.7 billion in GAAP assets.
Under terms of the agreement, Nationwide Life Insurance Company will purchase all of the stock of Jefferson National, which will become a wholly owned subsidiary of Nationwide.
“Clearly, the fee-based model is growing as a way to reach savers so we can help them prepare for and live in retirement,” said Nationwide Financial President and Chief Operating Officer Kirt Walker. “Combining forces with Jefferson National will accelerate Nationwide’s ability to establish a credible foothold in the fee-based market rather than trying to build this capability on our own. Very few firms across the industry have aggregated the advisor network that Jefferson National has built over the past several years. We’re excited about this transaction because it will firmly establish Nationwide in the fee-based market while maintaining our strong presence in the brokerage channel.”
Terms of the purchase agreement between Nationwide Life Insurance Company and Jefferson National are not being disclosed. Both parties, which are privately held, expect the transaction to close early in 2017.
The transaction is subject to customary closing conditions including approvals from the appropriate state and federal regulatory bodies.
Deloitte Corporate Finance LLC and Sutherland Asbill & Brennan LLP served as the financial and legal advisors for Nationwide in connection with the transaction. Raymond James & Associates and Sidley Austin LLP served as the financial and legal advisors for Jefferson National.
Note: Mr. Walker and Mr. Caplan will have limited availability for media interviews between 12:30 PM EDT and 1:30 PM EDT. Please email firstname.lastname@example.org or call 614-249-6349 to book.
About Jefferson National
Jefferson National is a recognized innovator of a leading tax-advantaged investing platform for RIAs, fee-based advisors and the clients they serve. Trusted partner to a network of nearly 4,000 advisors, Jefferson National provides greater efficiency, transparency and choice through an adaptable technology platform, award-winning distribution strategy and cost-effective servicing capabilities. Named the industry “Gold Standard” and winner of more than 50 industry awards, including the DMA 2010 Financial Services Company of the Year. The company serves advisors and clients nationwide, through its subsidiaries Jefferson National Life Insurance Company and Jefferson National Life Insurance Company of New York. To reach our advisor support desk, please call 1-866-WHY-FLAT (1-866-949-3528). To learn more, please visit www.jeffnat.com.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.