NFP, a provider of benefits and wealth management services and a broker dealer with a strong presence in the DC market, announced a deal with Madison Dearborn yesterday to take the firm private. The $1.3 billion price is a 25% premium over the $20.05 share price on March 12, when a possible deal was announced and trading was halted. Madison Dearborn also owns Nuveen Investments, which has a significant DCIO presence.
After a roll up of benefit and wealth management practices financed by Leon Black’s Apollo Capital and led by CEO Jessica Bibliowicz, NFP’s stock had reached almost $60 in February 2006 before falling during the Great Recession to less than $2. When the market crashed, the model of using shares to incent and retain acquired firms came under pressure.
NFP also owns RPAG, which supplies benchmarking tools and services to plan advisors as well as satisfaction surveys of record keepers and DCIOs under the DCP brand founded and run by Warren Cormier.
