The Charles Schwab Corporation today announced an agreement to acquire
ThomasPartners, Inc., which includes an upfront payment of $85 million in cash
and the opportunity for additional payments contingent on future growth in
assets under management (AUM). The deal is expected to close during the fourth
quarter, subject to customary closing conditions.
Headquartered in Wellesley, Massachusetts, ThomasPartners is a dividend
income-focused asset management firm with $2.3 billion in AUM as of September
30, 2012, in largely growth-oriented investment portfolios designed to
generate dividend income streams. ThomasPartners has consistently outperformed
relevant benchmarks over the nine-year history of its dividend product.
At current AUM levels, Schwab anticipates that the acquisition will be neutral
to EPS for the first 12 months post-closing, and become modestly accretive
within the next 12 months. Given demographic trends that are fueling growing
demand for income-oriented investment strategies, Schwab intends to further
leverage ThomasPartners' strong track record of growth and performance over
time.
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