Charles Schwab Corp. to Acquire Assets of USAA's Investment Management Company

   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 [e-mail]

(END) Dow Jones Newswires

July 25, 2019 17:47 ET (21:47 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.