M&A Deal Summary

Charles Schwab Acquires The 401 Company

On December 22, 2006, Charles Schwab acquired financial services company The 401 Company from Nationwide Mutual Insurance for 115M USD

Acquisition Highlights
  • This is Charles Schwab’s 4th transaction in the Financial Services sector.
  • This is Charles Schwab’s 8th largest (disclosed) transaction.
  • This is Charles Schwab’s 4th transaction in the United States.
  • This is Charles Schwab’s 2nd transaction in Texas.

M&A Deal Summary
Date 2006-12-22
Target The 401 Company
Sector Financial Services
Buyer(s) Charles Schwab
Sellers(s) Nationwide Mutual Insurance
Deal Type Divestiture
Deal Value 115M USD

Target

The 401 Company

Austin, Texas, United States
Based in Austin, Texas and founded in 1983, The 401(k) Company offers defined contribution plan administration to more than 100 companies, serving 400,000 retirement plan participants around the country.

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Buyer(S) 1

Buyer

Charles Schwab

Westlake, Texas, United States
Category Company
Founded 1971
Sector Financial Services
Employees32,600
Revenue 18.8B USD (2023)
DESCRIPTION
Charles Schwab's corporate headquarters in downtown San Francisco, California.
Charles Schwab's corporate headquarters in downtown San Francisco, California.

Charles Schwab provides securities brokerage, banking, money management, and financial advisory services. The Company provides financial services to individuals and institutional clients through two segments, Investor Services and Institutional Services. The Investor Services segment provides retail brokerage and banking services to individual investors. The Institutional Services segment provides custodial, trading, and support services to independent investment advisors. The Institutional Services segment also provides retirement plan services, specialty brokerage services, and mutual fund clearing services. Charles Schwab was founded in 1971 and is based in Westlake, Texas.

DEAL STATS #
Overall 4 of 13
Sector (Financial Services) 4 of 11
Type (Divestiture) 1 of 2
State (Texas) 2 of 4
Country (United States) 4 of 13
Year (2006) 1 of 1
Size (of disclosed) 8 of 9
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2004-08-31 SoundView Technology Group

Old Greenwich, Connecticut, United States

SoundView Technology Group, Inc. is the parent of SoundView Technology Corporation, a research-driven securities firm focused on technology and other growth sectors.

Sell $265M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2007-04-02 Schwab Retirement Plan Services

Austin, Texas, United States

Schwab Retirement Plan Services Co. is a provider of mid-size and large retirement plans.

Buy -

Seller(S) 1

SELLER

Nationwide Mutual Insurance

Columbus, Ohio, United States
Category Company
Founded 1925
Sector Insurance
DESCRIPTION
Nationwide office in Raleigh, North Carolina.
Nationwide office in Raleigh, North Carolina.

Nationwide is a diversified insurance and financial services organization that provides a full range of personalized insurance and financial services, including auto insurance, motorcycle, boat, homeowners, life insurance, farm, commercial insurance, administrative services, annuities, mortgages, mutual funds, pensions and long-term savings plans. Nationwide was formed in 1925 and is based in Columbus, Ohio.

DEAL STATS #
Overall 1 of 7
Sector (Financial Services) 1 of 1
Type (Divestiture) 1 of 7
State (Texas) 1 of 1
Country (United States) 1 of 7
Year (2006) 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-05 FutureHealth

Hunt Valley, Maryland, United States

FutureHealth Corp. is a population risk management company located in Hunt Valley, Maryland. The Company provides utilization, case, disease and maternity management, as well as a nurse advice and triage line. FutureHealth takes a comprehensive approach, which teaches patients to work with their physicians, comply with treatment plans and become active participants in their own healthcare.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2012-05-01 Harleysville Group

Harleysville, Pennsylvania, United States

Harleysville Group, Inc. is an insurance company. Harleysville markets its insurance products to individuals, and small and medium-sized businesses through independent agents.

Buy $834M
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