Charles Schwab to Buy USAA Investment Company Assets for $1.8 Billion

Schwab said the deal would add more than one million accounts with about $90 billion in assets.


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Jim Young/Reuters

Charles Schwab
Corp.

said it would acquire assets of USAA’s investment management company, including brokerage and managed-portfolio accounts, for $1.8 billion.

Schwab said Thursday the deal would add more than one million accounts with about $90 billion in assets. The companies agreed to a long-term referral agreement under which Schwab would become the exclusive wealth management and brokerage provider for members of USAA.

The Wall Street Journal reported earlier this month that the two companies were discussing a deal.

San Francisco-based Schwab, which already has more than $3.5 trillion in client assets, has been moving further into wealth management as it increasingly expands beyond its roots as a discount broker.

Financial firms are gravitating toward the relatively stable fees paid for financial advice and the deeper relationships with clients and their families it facilitates.

Schwab said it expected the deal to add modestly to earnings per share on a cash basis a year after the deal closes.

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.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

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