COLUMBUS, Ohio, Dec. 22 /PRNewswire-FirstCall/ -- Nationwide Financial
Services, Inc. (NYSE: NFS) today announced an agreement to sell The 401(k)
Company, Inc. to The Charles Schwab Corporation (Nasdaq: SCHW) for $115
million in cash, subject to a post-closing adjustment.
The 401(k) Company, based in Austin, Texas, provides defined
contribution plan administrative and record-keeping services to employers
in the large-case market. As of Sept. 30, 2006, The 401(k) Company
administered assets totaling approximately $21.7 billion for 100 companies
with 400,000 participants.
The transaction has been approved by each company's board of directors
and is expected to close by the end of the first quarter of 2007. The
proceeds of the sale will be used for general corporate purposes.
"This transaction will enable our private-sector business to focus on
our core markets, which are small and micro 401(k) plans," said Mark R.
Thresher, president and chief operating officer of Nationwide Financial.
"By sharpening our focus, not only will we better serve this market, but we
also will be able to more effectively deploy capital through reinvestment
in core businesses."
"We believe this transaction is a good fit for The 401(k) Company
customers and will enable The 401(k) Company to continue Nationwide
Financial's tradition of providing high-quality retirement plan services,"
Thresher added. "We're also pleased to work with a company that is
committed to making this transition as seamless as possible to affected
associates and clients."
When the transaction is complete, Nationwide Financial will administer
approximately $26 billion in private-sector retirement plans.
UBS Investment Bank acted as the financial advisor to Nationwide
Financial on this transaction.
About Nationwide Financial
Nationwide Financial Services, Inc. (NYSE: NFS), a publicly traded
company based in Columbus, Ohio, provides a variety of financial services
that help consumers invest(1) and protect their long-term assets, and
offers retirement plans and services through both public- and
private-sector employers.
It's part of the Nationwide group of companies, which offers
diversified insurance and financial services. The group is led by
Nationwide Mutual Insurance Company, which is ranked No. 98 on the Fortune
100 based on 2005 revenue(2). To obtain investor materials, including the
Company's 2005 Annual Report to Shareholders, 2005 Annual Report on Form
10-K, quarterly statistical supplements and other corporate announcements,
please visit the investor relations section of the Company's Web site at
http://www.nationwide.com.
About The Charles Schwab Corporation
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 330 offices and 6.8 million client
brokerage accounts, 535,000 corporate retirement plan participants, 181,000
banking accounts, and $1.33 trillion in client assets as of September 30,
2006. 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. The
Charles Schwab Bank, N.A. (member FDIC) provides banking and mortgage
services and products. More information is available at http://www.schwab.com.
Nationwide, Nationwide Financial and the Nationwide Framemark are
federally registered service marks of Nationwide Mutual Insurance Company.
On Your Side is a service mark of Nationwide Mutual Insurance Company.
(1) Nationwide Investment Services Corporation, member NASD. In MI only:
Nationwide Investment Svcs. Corporation.
(2) Fortune Magazine, April 2006
Contacts:
Mark Barnett (614) 677-5331
barnetj5@nationwide.com
Jeff Botti (614) 249-6339
bottij@nationwide.com
SOURCE Nationwide Financial Services, Inc.
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Related links:
http://www.nationwide.com
http://www.schwab.com
http://www.prnewswire.com/comp/607050.html /
CONTACT:
Mark Barnett, +1-614-677-5331, or
barnetj5@nationwide.com, or Jeff Botti, +1-614-249-6339, or
bottij@nationwide.com, both of Nationwide Financial Services,
Inc.
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