The Charles Schwab Corporation has agreed to buy ThomasPartners, a dividend income-focused asset management firm with $2.3 billion in assets, for $85 million in cash and additional payments contingent on future growth in assets.

The deal is expected to close during the fourth quarter.

As a result of the deal, the chief executive and chairman of ThomasPartners, Gregory Thomas, and his investment team led by president, chief operating officer and chief investment officer William McMahon, will remain with the firm.

The firm’s money management products will be made available at a lower cost to clients of independent Registered Investment Advisors through the Schwab Advisor Services platform. At closing Schwab will waive transaction commission costs for ThomasPartners’ managed accounts custodied on Schwab’s Advisor Services platform.

ThomasPartners’ portfolios will be offered to Schwab retail clients as part of its advisory solutions, which include Schwab Advisor Network, Windhaven Portfolios, Schwab Managed Portfolios, Schwab Private Client, and access to third party portfolio management.

“There is a growing interest among investors and investment advisors in the growth-oriented dividend income approach that is ThomasPartners’ core focus and expertise,” stated Walt Bettinger, Schwab president and chief executive officer.

“With more than four million baby boomers entering retirement age each year in the United States, and tens of millions approaching that milestone over the coming decade, a rapidly growing segment of investors and investment advisors are focusing on producing income within their investment portfolios. ThomasPartners’ dividend strategy complements Schwab’s existing asset management line-up and helps provide our clients with a more complete range of money management solutions to serve them along their investing journey.”



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