SAN FRANCISCO, April 2 /PRNewswire-FirstCall/ -- The Charles Schwab
Corporation (Nasdaq: SCHW) today announced the completion of its
acquisition of The 401(k) Companies, Inc. (with its subsidiaries "The
401(k) Company") from NFS Distributors, Inc. (NYSE: NFS). The 401(k)
Company will remain in Austin, Texas as a Charles Schwab Company and will
join Schwab's Corporate & Retirement Services division. Corporate &
Retirement Services now directly serves more than one million retirement
plan participants around the country.
"This is an important step forward in our ability to help Americans
achieve a comfortable retirement," said Charles R. Schwab, Schwab Chairman
and CEO. "Many Americans gain their first exposure to savings and
investments through their 401(k) accounts, and servicing these accounts and
helping to educate individuals are responsibilities that we take very
seriously. We are pleased to join forces with The 401(k) Company in that
endeavor."
While Schwab has traditionally enjoyed strong growth in the small, mid
and large retirement plan segments, The 401(k) Company has shown strength
in serving mega retirement plans. During the past two years, The 401(k)
Company's newly acquired plans have averaged more than $500 million in
assets and more than 8,000 participants.
"The 401(k) Company is a perfect complement to our existing retirement
services business, and we look forward to working with our new colleagues
as we continue to bring superior service and value to companies and their
employees," said Jim McCool, executive vice president of Schwab's Corporate
& Retirement Services division.
McCool also noted that the last quarter was highly successful for both
companies while the details of the transaction were being finalized.
"Following the acquisition announcement in December, business has
continued full steam ahead," said McCool. "In the first quarter of 2007,
Schwab and The 401(k) Company secured combined new client commitments
totaling 26 retirement plans with $2.8 billion in assets and more than
53,000 participants. In addition, requests for proposals were at an
all-time high. This success indicates to us that the retirement plan
marketplace recognizes the benefit of our two firms coming together."
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 300 offices and 6.8 million client
brokerage accounts, more than one million corporate retirement plan
participants, 150,000 banking accounts, and $1.3 trillion in client assets.
Through its operating subsidiaries, the company provides a full range of
securities brokerage, banking, money management and financial advisory
services to individual investors and independent investment advisors. Its
broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC,
http://www.sipc.org), and affiliates offer a complete range of investment
services and products including an extensive selection of mutual funds;
financial planning and investment advice; retirement plan and equity
compensation plan services; referrals to independent fee-based investment
advisors; and custodial, operational and trading support for independent,
fee- based investment advisors through its Schwab Institutional division.
The Charles Schwab Bank, N.A. (member FDIC) provides banking and mortgage
services and products. CyberTrader(R), Inc. (member SIPC,
http://www.sipc.org) is an electronic trading technology and brokerage firm
providing services to highly active, online traders. More information is
available at http://www.schwab.com.
SOURCE Charles Schwab
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Related links:
http://www.schwab.com/
CONTACT:
media, Lindsay Tiles, +1-415-667-3997, or
investors/analysts, Rich Fowler, +1-415-636-9869, both of Charles
Schwab
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