Charles Schwab Corp. to Acquire Assets of USAA's Investment Management Company
July 25 2019 - 6:02PM
Dow Jones News
By Stephen Nakrosis
The Charles Schwab Corp. (SCHW) on Thursday said it would
acquire assets of USAA's Investment Management Company, including
brokerage and managed portfolio accounts, for $1.8 billion in
cash.
Schwab said the deal will add over one million accounts with $90
billion in assets.
Schwab also said the companies agreed to a long-term referral
agreement which will see Schwab become the exclusive wealth
management and brokerage provider for USAA members.
Schwab said it "expects the transaction to be modestly accretive
to EPS on a cash basis by year one and on a GAAP basis by year
two."
The transaction will be funded with available cash, Schwab
said.
The deal was approved by the boards of both companies and is
expected to close sometime next year.
The Wall Street Journal, citing "people familiar with the
matter," exclusively reported earlier this month that the two
companies were discussing this deal.
--Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
July 25, 2019 17:47 ET (21:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
Charles Schwab (NYSE:SCHW)
Historical Stock Chart
From Mar 2024 to Apr 2024
Charles Schwab (NYSE:SCHW)
Historical Stock Chart
From Apr 2023 to Apr 2024