Charles Schwab To Acquire TD Ameritrade In All Stock Deal Valued At $26 Bln

(RTTNews) - The Charles Schwab Corp. (SCHW) has agreed to acquire TD Ameritrade Holding Corp. (AMTD) in an all-stock deal valued at approximately $26 billion. Under the agreement, TD Ameritrade stockholders will receive 1.0837 Schwab shares for each share of TD Ameritrade.

Post-closing, existing Schwab stockholders will be holding approximately 69 percent of the combined company. The Toronto-Dominion Bank or TD Bank, which currently holds approximately 43 percent of TD Ameritrade's common stock, will have an estimated aggregate ownership position of approximately 13 percent in the combined company, and other TD Ameritrade stockholders will be holding approximately 18 percent. TD Bank's voting stake will be capped at 9.9%. TD Bank will have the right to name two new seats on the Schwab Board.

TD Ameritrade will have the right to nominate one director to the Charles Schwab board. The company's board has suspended its CEO search and has appointed Steve Boyle interim president and CEO. TD Ameritrade noted that there will be workforce reductions as part of the integration.

With the anticipated synergies, Charles Schwab expects the deal to be 10-15% accretive to GAAP EPS and 15-20% accretive to operating cash EPS in year three, post-close. The companies expect to close the transaction in the second half of 2020.