RALEIGH, N.C.--(BUSINESS WIRE)--Schwab Performance Technologies (SPT), a subsidiary of The Charles Schwab Corporation (Nasdaq:SCHW) and a leading provider of portfolio management and accounting solutions to independent Registered Investment Advisors (RIAs), today announced that it has entered into an agreement to acquire RIA back office outsourcing provider Etelligent Consulting, Inc. The acquisition is expected to close in the first quarter of 2008, subject to customary closing conditions. Financial terms of the transaction are not being disclosed.
“This strategic acquisition underscores Schwab’s commitment to providing advisors with the tools and support they need to succeed in an industry that is growing at a rapid rate,“ said Charles Goldman, executive vice president and head of Schwab Institutional, a leading provider of custodial, operational and trading support for independent RIAs. “Removing back office challenges is especially critical as more advisors leave established firms and strike out on their own. By providing opportunities to outsource administrative tasks, we can help new and established advisors focus on their clients and accelerate the growth of their businesses.”
Guided by a philosophy of true open architecture, SPT provides interfaces with more than 40 different broker-dealers and makes its portfolio management software available to advisory firms regardless of where they custody assets. Today, more than 3,000 independent RIA firms use SPT’s flagship product PortfolioCenter®, one of the industry’s leading portfolio data management solutions. Etelligent uses PortfolioCenter as a key part of its business model, allowing advisors to outsource major administrative responsibilities in their back office like portfolio data management and performance reporting.
“SPT and Etelligent share a common goal of helping advisors increase the efficiencies of their back offices through the combination of technology and experienced professionals,” said Dan Skiles, vice president of technology for Schwab Institutional. “We expect that this acquisition will enable us to help advisors achieve even greater scale across their businesses, as well as offer them greater flexibility in how they work with us.”
“We are very pleased to be joining forces with Schwab Performance Technologies, a highly respected company that has been a great partner for us,” said Jim Starcev, managing principal of Etelligent Consulting, Inc. “We are confident that the combination of our two companies will provide advisors with an unrivaled portfolio management and reporting experience.”
Based in Overland Park, Kansas and founded in 2000, Etelligent Consulting, Inc. provides back office outsourcing services to more than 100 independent investment advisory firms.
About Schwab Performance Technologies
Founded in 1985, Schwab Performance Technologies is a subsidiary of The Charles Schwab Corporation and a leading provider of portfolio management systems and accounting solutions to more than 3,000 independent investment advisory firms. Schwab Performance Technologies develops powerful portfolio management solutions to help advisors manage their practice and service their clients. More information is available at www.schwabpt.com.
About Schwab Institutional
Schwab Institutional is a leading provider of custodial, operational and trading support for independent investment advisors. Since 1987, Schwab Institutional has supported independent investment advisors by offering support and services to help grow their businesses and help their clients reach their financial goals. As of September 30, 2007, client assets custodied with Schwab Institutional stood at $581 billion. These assets, managed by the approximately 5,500 independent advisor firms Schwab Institutional currently serves, represent approximately one-third of total client assets custodied with The Charles Schwab Corporation. Brokerage products offered by Schwab Institutional are not FDIC insured, are not guaranteed deposits, and are subject to investment risk, including the possible loss of principle invested. Schwab Institutional is a division of Charles Schwab & Co., Inc.
About Charles Schwab
The Charles Schwab Corporation (Nasdaq: SCHW) is a leading provider of financial services, with more than 300 offices and 7.0 million client brokerage accounts, 1.2 million corporate retirement plan participants, 229,000 banking accounts, and $1.5 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, http://www.sipc.org), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Schwab Institutional division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at www.schwab.com.