SAN FRANCISCO, Dec. 22 /PRNewswire-FirstCall/ -- The Charles Schwab
Corporation (Nasdaq: SCHW) today announced an agreement to acquire The
401(k) Company from Nationwide Financial Services, Inc. (NYSE: NFS) for
$115 million in cash. The deal is expected to close by the end of the first
quarter in 2007, subject to customary closing conditions. The 401(k)
Company will join the Investor Services Enterprise which includes Schwab's
Corporate & Retirement Services division.
"Many Americans are depending on their 401(k) accounts to help them
achieve a comfortable retirement -- it's one of the pillars of our
retirement security system," said Charles R. Schwab, Schwab Chairman and
CEO. "The 401(k) Company has dedicated itself to providing retirement plan
sponsors and employees with absolute quality and low-cost products and
services, driven by a strong sense of entrepreneurial spirit and integrity.
Like Schwab, it has recognized the importance of open investment
architecture, fee transparency and client focus. I feel certain that the
combination of our two companies will allow us to have an even greater
impact on the 401(k) industry and the savings habits of retirement plan
participants."
The 401(k) Company complements Schwab's retirement business strategy
and increases Schwab's ability to meet the needs of retirement plans of all
sizes. While Schwab has enjoyed strong growth in the small, mid and large
retirement plan segments, The 401(k) Company has been very successful
winning against traditional providers in the mega plan segment. 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.
"We are proud and excited to be joining such a great company. Our
clients are becoming increasingly involved in helping their employees plan
for and achieve their retirement goals," said Jerry Bramlett, president and
CEO of The 401(k) Company. "Schwab's strong national corporate retirement
and consumer brand adds tremendous strength to our message and our ability
to help with those goals, and I'm pleased our two companies share the same
commitment to serving clients and bettering the 401(k) industry."
"Joining forces with The 401(k) Company expands our ability to serve
the marketplace," said James McCool, executive vice president of Schwab's
Corporate & Retirement Services division. "We have been consistently
investing in and growing our retirement plan business at Schwab, primarily
serving clients in the small, mid and large segments. In addition to this
ongoing investment, we are now, for the first time, making a significant
investment in serving employers and their employees in the mega plan
segment. We look forward to the opportunity to strengthen our role as
client advocates in the industry."
Based in Austin, Texas and founded in 1983, The 401(k) Company offers
defined contribution plan administration to more than 100 companies,
serving 400,000 retirement plan participants around the country. The
company's client assets total $21.7 billion.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of
financial services, with more than 300 offices and 6.7 million client
brokerage accounts, 541,000 corporate retirement plan participants, 146,000
banking accounts, and $1.2 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
Rich Fowler, +1-415-636-9869, both of Charles Schwab
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