Charles Schwab’s Acquisition Of USAA Wealth Management and Brokerage Businesses


Simpson Thacher represented USAA in connection with its sale of the brokerage and managed portfolio accounts of USAA Investment Management Company (“USAA”) to Charles Schwab Corporation (NYSE: SCHW) (“Schwab”) for $1.8 billion.

The companies also expect to enter into a long-term referral agreement that would make Schwab the exclusive wealth management and brokerage provider for USAA members. The transaction is expected to close in 2020, subject to regulatory approvals and other customary conditions.

The USAA family of companies provides insurance, banking, investments, retirement products and advice to more than 12.7 million current and former members of the U.S. military and their families.

Schwab is a leading provider of financial services, with more than 365 offices and 12 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.3 million banking accounts, and $3.70 trillion in client assets as of June 30, 2019.

The Simpson Thacher team includes Jonathan Corsico (Picture), Jonathan Stradling, Benjamin Bodurian, Hilary Albrecht, Paul Bolaji (M&A); David Blass, Lucie Enns, Meredith Abrams (Investment Management and Broker-Dealer Regulatory); David Rubinsky, Jason Fixelle and Eric Wolf (Executive Compensation and Employee Benefits); Marcela Robledo (Intellectual Property); Jonathan Goldstein and Nicole Humphrey (Tax); Keith Noreika and Adam Cohen (Banking).

Involved fees earner: Meredith Abrams – Simpson Thacher & Bartlett; Hilary Albrecht – Simpson Thacher & Bartlett; David Blass – Simpson Thacher & Bartlett; Benjamin Bodurian – Simpson Thacher & Bartlett; Paul Bolaji – Simpson Thacher & Bartlett; Adam Cohen – Simpson Thacher & Bartlett; Jonathan Corsico – Simpson Thacher & Bartlett; Lucie Enns – Simpson Thacher & Bartlett; Jason Fixelle – Simpson Thacher & Bartlett; Jonathan Goldstein – Simpson Thacher & Bartlett; Nicole Humphrey – Simpson Thacher & Bartlett; Keith Noreika – Simpson Thacher & Bartlett; Marcela Robledo – Simpson Thacher & Bartlett; David Rubinsky – Simpson Thacher & Bartlett; Jonathan Stradling – Simpson Thacher & Bartlett; Eric Wolf – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: USAA;