The financial firm is paying $1.8 billion for USAA’s Investment Management company, which includes portfolios and brokerage accounts of about 13 million current and former members of the U.S. military and their families.
“We are honored to be entrusted with serving the financial needs of USAA’s members. We have long admired USAA’s mission to enhance the financial security of our country’s military servicemen and women and their families” said Walt Bettinger, President and CEO of Schwab in the press release.
Additionally, Schwab plans to offer roles to a significant number of USAA employees to continue to serve its members.
The cash deal gives Schwab scale to its $1.9T Investor Services business through the addition of over 1 million new accounts and approximately $90B in client assets. It will also allow the firm to provide USAA members exclusive wealth management and brokerage services via a long-term referral agreement.
Stuart Parker, CEO of USAA, said in the release that the Schwab deal is also about fostering the bottom line of America’s military. “Our mission is to facilitate the financial security of the military community through highly competitive products.”
The deal is expected to close in 2020.