Charles Schwab To Buy Assets Of USAA's Investment Management Company

(RTTNews) - The Charles Schwab Corp. (SCHW) has agreed to acquire assets of USAA's Investment Management Company for $1.8 billion. For Schwab, the deal adds over 1 million new accounts and approximately $90 billion in client assets. Also, Schwab becomes an exclusive wealth management and brokerage provider for USAA members, through a long-term referral agreement.

Schwab expects the acquisition to be modestly accretive to EPS on a cash basis by year one and on a GAAP basis by year two. Also, Schwab plans to offer employment to a significant number of USAA employees.