Charles Schwab on Thursday announced plans to acquire assets of USAA's Investment Management Co., including brokerage and managed portfolio accounts, for $1.8 billion in cash.
The companies have also agreed to a long-term referral agreement, effective at closing of the acquisition, that would make Schwab the exclusive wealth management and brokerage provider for USAA members.
"We are committed to making this a seamless transition for members and providing opportunities for employees," USAA Chief Executive Stuart Parker said in a statement. "USAA remains focused on providing award-winning customer service and advice on products and services across property and casualty, banking and life insurance."
Schwab said it plans to offer roles to a significant number of USAA employees to continue to serve its members.
Shares of Schwab slipped about 0.4% in premarket trading Friday.