Charles Schwab to Acquire TD Ameritrade

December 2, 2019

On November 25, 2019, The Charles Schwab Corporation announced that it had entered into an agreement to acquire TD Ameritrade Holding Corporation in an all-stock transaction.

Pursuant to the agreement, The Charles Schwab Corporation (“Charles Schwab”) will acquire TD Ameritrade Holding Corporation (“TD Ameritrade”) in a $26 billion, all-stock transaction. TD Ameritrade stockholders will receive a 17% premium over the 30-day volume weighted average price exchange ratio as of November 20, 2019, with each TD Ameritrade stockholder receiving 1.0837 Charles Schwab shares for each TD Ameritrade share. Stephen Boyle, TD Ameritrade’s EVP and CFO will become interim President and CEO of Charles Schwab, which was formerly actively engaged in a CEO search. The transaction is expected to close in the second half of 2020, subject to customary closing conditions including shareholder approval of each of the parties. Following the transaction, Charles Schwab is expected to have more than $5 trillion in client assets.

TD Ameritrade (Nasdaq: AMTD) is a financial services firm that provides investing services and education to approximately 12 million client accounts with approximately $1.3 trillion in assets. Sandler O’Neill + Partners served as financial advisor to the Strategic Development Committee of the Board of Directors of TD Ameritrade in the transaction.

Charles Schwab (NYSE: SCHW) is a financial services provider that provides a full range of wealth management, securities brokerage, banking, asset management, custody and financial advisory services to individuals and independent investment advisors. It has $3.77 trillion in client assets as of September 30, 2019.

To read the press release: please click here.


Investment Manager M&A, Mutual Fund M&A, Transactions