Charles Schwab announced plans Monday to purchase brokerage rival TD Ameritrade in an all-stock $26 billion deal that will result in the San Francisco-based company moving its headquarters to Dallas-Fort Worth.
Since both companies have a sizable presence in the DFW area, the move will allow the combined firm to take advantage of the central location of the new Schwab 1-million square-foot Westlake campus. The campus will serve as the hub of a network of Schwab branches and operations centers that span the entire country.
Schwab currently has about 2,400 workers in the region; TD Ameritrade reports about 2,000 employees in Southlake. The Westlake campus is said to have room for 7,000 jobs, per the release.
“With this transaction, we will capitalize on the unique opportunity to build a firm with the soul of a challenger and the resources of a large financial services institution that will be uniquely positioned to serve the investment, trading and wealth management needs of investors across every phase of their financial journeys,” said Schwab President and CEO Walt Bettinger.
Pending regulatory approval, the integration of the two firms is expected to take 18 months to 36 months after the deal is closed. The companies expect the transaction to close in the second half of 2020.
Omaha, Nebraska-based TD Ameritrade CEO Tim Hockey previously announced plans to step down next February. The companies said Monday they will suspend the CEO search and have named TD Ameritrade chief financial officer Stephen Boyle as TD Ameritrade’s interim president and CEO.
Schwab has named Senior EVP and COO Joe Martinetto will oversee the integration.
Boyle will assume leadership of the company effective immediately, guiding its management team through its fiscal 2020 plan and the proposed integration with Schwab.
Charles Schwab was founded in 1971 in San Francisco.
“A small percentage of roles may move from San Francisco to Westlake over time, either through relocation or attrition,” the announcement reads. “The vast majority of San Francisco-based roles, however, are not anticipated to be impacted by this decision. Schwab expects to continue hiring in San Francisco and retain a sizable corporate footprint in the city.”
Schwab’s current workforce is about 19,000 people.
