Charles Schwab to acquire The 401(k) Company

Charles Schwab to acquire The 401(k) Company

Charles Schwab Corp. has said in a statement that they are going to acquire The 401(k) Company. This company is a retirement plan administrator with over $22 billion in assets.

With this Charles is hoping to enhance their retirement plan business. They are also in the process of selling its U.S. Trust Corp. unit to Bank of America Corp. for $3.3 billion.

Schwab added that they expect this deal to be completed by the first quarter of next year. The 401(k) Company is currently owned by Nationwide Financial Services Inc. and after the completion of the deal; it would operate under the Schwab’s corporate and retirement services division.

Schwab executives had said earlier this month that they were looking for deals in the 401(k) arena. They aim to make available low-cost services to ordinary investors.