Charles Schwab Corp. office building in New York. (Photo: Victor J. Blue/Bloomberg)
Charles Schwab will spend $1.8 billion to buy the brokerage and managed portfolio accounts of USAA's Investment Management Company. The deal includes a referral agreement that makes Schwab the "exclusive wealth management and brokerage provider" for USAA members.
According to Schwab, the transaction should add some one million new accounts and about $90 billion in client assets to its Investor Services business, which now has $1.9 trillion in assets. Schwab's total assets are $3.7 trillion, with about $1.8 trillion in its Advisor Services unit.
Talk of the deal was reported by the Wall Street Journal 10 days ago. It comes on the heels of USAA's sale of its asset-management business, including mutual funds, ETF operations and 529 plans, to Victory Capital; these activities encompassed about $81 billion of assets.
