Another opinion, layoffs to follow though:
- Charles Schwab will acquire USAA’s brokerage and wealth management business for a value of $1.8B.
- The deal will add 1M+ new customer accounts with $90B of assets split across self-directed brokerage ($67B) and managed money ($23B).
- Upon deal completion, ~$7B of cash will be immediately moved to Schwab’s balance sheet.
- The deal will give Schwab an opportunity to realize an annualized synergy run rate of $230M.
- The company is acquiring these assets at a relatively cheap valuation, and the deal should prove value accretive over the long term.