Davis Polk is advising The Charles Schwab Corporation on its $26 billion all-stock acquisition of TD Ameritrade Holding Corporation. Under the agreement, TD Ameritrade stockholders will receive 1.0837 Schwab shares for each TD Ameritrade share. The transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals and approval by the stockholders of both companies.
Schwab is a leading provider of financial services, with more than 365 offices and 12.1 million active brokerage accounts, 1.7 million corporate retirement plan participants, 1.4 million banking accounts, and $3.77 trillion in client assets as of September 30, 2019. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. TD Ameritrade provides investing services and education to approximately 12 million client accounts totaling approximately $1.3 trillion in assets, and custodial services to more than 7,000 registered investment advisors. TD Ameritrade is a leader in U.S. retail trading, executing an average of approximately 800,000 trades per day, more than a quarter of which come from mobile devices.
The Davis Polk team is co-led by financial institutions M&A partners Randall D. Guynn, William L. Taylor and Lee Hochbaum. The financial institutions/M&A team includes counsel Christopher M. Paridon and associates Matthew J. Cowcher and Erin E. Brinig. Counsel Zachary J. Zweihorn is providing broker-dealer financial institutions advice. Partner Gregory S. Rowland is providing investment management advice. Partner Ronan P. Harty is providing antitrust and competition advice. Partner Shane Tintle is providing capital markets advice. Partner Jeffrey P. Crandall is providing executive compensation advice. Partner David H. Schnabel is providing tax advice. Members of the Davis Polk team are based in the New York and Washington DC offices.