National Financial Partners (NFP) agreed to a $1 billion cash deal to be taken private by Madison Dearborn Partners, one month after the advisory and brokerage services firm said it was considering a sale.
The offer of $25.35 per share is an 8.3% premium over Friday’s close. NFP shares jumped 6.8% to $25.01 in pre-market trading Monday, while the stock is up more than 36% so far this year.
Last month NFP, which has a market value of about $930 million, disclosed that is was exploring a possible sale after receiving interest from private equity firms, at which time it formed an independent committee. The deal with Madison Dearborn is expected to close in the third quarter.
“This agreement also provides significant opportunities for our clients and employees by partnering with an extremely well-respected firm with proven expertise in the financial services sector,” Jessica Bibliowicz, chairman and chief executive of NFP, said in a statement.
NFP announced a year ago that Bibliowicz planned to step down as chief executive. Current COO Douglas Hammond will take over in April, while Bibliowicz will become non-executive chairman.
During Bibliowicz’s 14 years as CEO, NFP expanded by acquiring several smaller advisory firms.
Fourth-quarter profit for NFP jumped 73% on higher revenue and larger impairment charges in the year-earlier period.