US brokerage and banking firm Charles Schwab has inked an agreement to acquire ThomasPartners in a deal, which includes $85m in cash and options for additional payments subject to future growth in assets under management (AUM).
Pending regulatory approval and customary closing conditions, the transaction is expected to complete during the fourth quarter of 2012.
After closing of the deal, the acquirer will give up transaction commission costs for ThomasPartners’ managed accounts custodied on the former’s Advisor Services platform.
ThomasPartners CEO and chairman Gregory Thomas, and his investment team led by president, chief operating officer and chief investment officer William McMahon, will remain with the firm to oversee the investment and portfolio management processes.
The asset management firm’s portfolios will be provided to retail clients of the acquirer, as part of its growing selection of advisory systems, including Advisor Network, Windhaven Portfolios, Managed Portfolios, Private Client, and access to third party portfolio management.
The company manages over 300 offices and serves 8.7 million client brokerage accounts, 1.5 million corporate retirement plan participants, and 838,000 banking accounts, with $1.89 trillion in client assets.
Massachusetts based ThomasPartners is a dividend income-focused asset management firm with $2.3bn in AUM, as of 30 September 2012.