TIAA-CREF buying Nuveen for $6.25 billion

Financial services provider TIAA-CREF says it’s buying investment manager Nuveen Investments in a deal valued at $6.25 billion including debt.

Nuveen has about $221 billion in assets under management, bringing TIAA-CREF’s total to about $800 billion. TIAA-CREF says the addition boosts its position as a retirement and financial services provider and expands its variety of products and services.

Nuveen is currently owned by an investor group led by investment firm Madison Dearborn Partners. Once acquired, it will operate as a separate subsidiary within TIAA-CREF’s asset management business.

John Amboian will remain as Nuveen’s CEO. The boards of both companies have approved the deal. The acquisition is expected to close by the end of 2014.