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Charles Schwab seals deal to buy ThomasPartners.


15 October 2012 a[euro]" US financial services provider The Charles Schwab Corp (NYSE:SCHW) said on Monday it had entered into an agreement to take over domestic dividend income-focused asset management firm ThomasPartners Inc.

The purchase price includes an advance cash payment of USD85m (EUR65.6m) as well as further amounts, depending on future growth in assets under management.

The transaction is seen to be completed in the fourth quarter of this year.

The takeover should not affect earnings per share in the first 12 months after finalisation, based on current levels of assets under management, and should have a modest positive impact in the following year, Charles Schwab said.

The target's dividend strategy is complementary to Charles Schwab's asset management suite and, as a result of the acquisition, Charles Schwab's customers will gain access to a more comprehensive money management offering, the buyer's president and CEO, Walt Bettinger, said.

Charles Schwab said it would offer ThomasPartners' portfolios to retail customers within its suite of advisory solutions, which includes Schwab Advisor Network, Windhaven Portfolios, Schwab Managed Portfolios and Schwab Private Client.

The companies have partnered since 2001. Over one half of ThomasPartners' assets are currently custodied on the buyer's advisor services platform.

ThomasPartners is based in Wellesley, Massachusetts. The company hadA assets under management of USD2.3bn as at end-September 2012.

Charles Schwab is headquartered in San Francisco, California, and has a network of over 300 locations. Customer assets at the firm stand at USD1.89trn.Country: USASector: Banking/Financial ServicesTarget: ThomasPartners IncBuyer: The Charles Schwab Corp Deal size in USD: 85mType: Corporate acquisitionStatus: AgreedComment: Total price includes potential further amounts.

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Publication:M & A Navigator
Date:Oct 15, 2012
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