Under the terms of the agreement, optionsXpress stockholders will receive 1.02 shares of Schwab stock for each share of optionsXpress stock.
Based on Schwab’s closing stock price as of 18 March 2011, the transaction values each optionsXpress share at $17.91.
Initially, both the companies will retain their separate brand identities, while benefiting from synergies and capabilities across their complementary business lines.
Upon completion of the transaction, optionsXpress CEO David Fisher will continue to lead optionsXpress as its president and a Schwab senior vice president.
Schwab estimates the acquisition will be modestly accretive over the first full year of combined operations, including expected revenue and expense synergies totaling approximately $80m.
optionsXpress had 385,200 client accounts, $8.1bn in client assets and a 12 month average of 44,800 daily average revenue trades, as of 28 February 2011.
Schwab president and CEO Walt Bettinger said that the combination of optionsXpress and Schwab will offer active investors an unparalleled level of service and platform capabilities.
"The expected synergies of our combination make the acquisition a win-win-win for Schwab, optionsXpress and our many important active investor clients," Bettinger said.
