Schwab (SCHW) On Buying Spree, To Acquire Wasmer Schroeder
Zacks Investment Research | Feb 26, 2020 06:54AM ET
Charles Schwab (NYSE:SCHW) is on an acquisition spree, with the goal to strengthen its position in the brokerage industry. The company has inked a deal to acquire Naples, FL-based Wasmer, Schroeder & Company, LLC. The value of the all-cash deal has not been disclosed.
Wasmer Schroeder is an independent investment manager of fixed income separately managed accounts. It had almost $10.5 billion in assets under management as of Dec 31, 2019. The deal is expected to enhance Schwab’s fixed income capabilities and expand its approximately $90 billion in separately managed accounts.
The transaction, subject to customary closing conditions, is expected to close by mid-2020.
Wasmer Schroeder’s team of more than 60 employees, including roughly 30 investment professionals, has significant experience in the fixed income markets. The deal will provide Schwab an opportunity to increase asset flows in fixed income separately managed account business.
Rick Wurster, executive vice president, Schwab Asset Management Solutions said, “Wasmer Schroeder’s professionally managed portfolios and investment capabilities will help Schwab deliver on a wide-range of fixed income investment needs and preferences, and complements the total wealth management offering we make available to our retail and RIA clients.”
Past Announced Deals
Over the past year, Schwab has been undertaking several inorganic moves. In July 2019, it announced a deal to acquire certain assets of USAA’s Investment Management Company, including brokerage and managed portfolio accounts. The all-cash deal is valued at $1.8 billion.
Then in a surprise move, Schwab inked a deal to buy TD Ameritrade Holding (NASDAQ:AMTD) for nearly $26 billion in November 2019. This stock and cash transaction will create a behemoth in online brokerage space. (Read more: Zacks Investment Research
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