Charles Schwab Corporation (NYSE: SCHW) has completed its acquisition of Forge Global Holdings, Inc., bringing together leaders in public markets and private marketplace transactions. The acquisition is expected to position Schwab to offer a best-in-class experience across both markets for individual investors and registered investment advisors (RIAs).
The transaction saw Forge’s shareholders receive $45 cash per outstanding common share. As of the acquisition, Charles Schwab had 38.0 million active brokerage accounts, 5.6 million workplace plan participant accounts, and 2.2 million banking accounts. The company's client assets totaled $11.59 trillion.
The integration work is underway, and Forge will continue to operate its business and maintain its relationships with issuers. Schwab aims to introduce Forge’s products and capabilities to more individual investors and RIAs over time.
Rick Wurster, President and CEO of Charles Schwab, stated, “We believe helping more people participate directly in the growth of private companies is a meaningful opportunity for wealth creation and diversification, attractive to individual investors and the advisors who serve them. This acquisition helps us round out our alternative investments offer while bringing expanded access, better value, and increased transparency to the private markets, just as Schwab historically brought to the public market.”
The acquisition comes in line with Schwab's mission to provide a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. The company's primary banking subsidiary, Charles Schwab Bank, SSB, provides banking and lending services and products.
As the integration progresses, more details on the combined offer and integration will be shared in the months ahead. As a result of these announcements, the company's shares have moved 1.03% on the market, and are now trading at a price of $103.82. If you want to know more, read the company's complete 8-K report here.
