Charles Schwab says it entered into an asset purchase agreement with investment technology and data science firm Motif.
Schwab is acquiring all of Motif’s technology and intellectual property, which includes algorithms, patents and source code, in an all-cash transaction, according to a press release from the company. Motif’s platform offers thematic investing and personalization, supports fractional share trading and offers tax optimization strategies within portfolios, Schwab says.
Hardeep Walia, Motif’s founder and CEO, and the majority of the startup’s development and investment staff, are joining Schwab, according to the press release.
“We intend to leverage Motif’s platform to build on Schwab’s existing capabilities and help accelerate our development of thematic and direct indexing solutions for Schwab’s retail investors and RIA clients — all with the sophisticated digital experience our clients expect from Schwab,” Neesha Hathi, executive vice president and chief digital officer at Schwab, says in the press release.
Meanwhile, the deal doesn’t include Motif’s broker-dealer, RIA, client accounts and client assets, Schwab says. Motif recently announced that Folio Investments is buying its client accounts, according to the press release.
The deal, the financial terms of which the companies didn’t disclose, is expected to close by the middle of the year, Schwab says.
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Source: Financial Advisor