Charles Schwab has agreed to purchase certain assets of USAA Investment Management Company in a cash deal worth $1.8bn.

The assets to be acquired include brokerage and managed portfolio accounts.

USAA serves over 13 million existing and former US military members and their families. Its suite of services includes banking, investments, insurance, retirement products, and advice.

The deal adds around $90bn in assets and more than one million accounts to Charles Schwab’s books.

The two parties will also ink a long-term referral agreement, under which Schwab will become the exclusive provider of wealth management and brokerage services for USAA members.

The referral agreement will take effect upon closure of the deal next year.

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USAA CEO Stuart Parker said: “This agreement with Schwab can help enhance our members’ financial futures with a client-first approach that offers access to more choices in investment products.

“We are committed to making this a seamless transition for members and providing opportunities for employees.”

Schwab intends to retain a “significant number” of USAA staff.

The transaction has already secured the green light from the two companies’ board.

The account conversion is expected to occur upon deal completion, which is pending regulatory nod.

Charles Schwab president and CEO Walt Bettinger said: “We have long admired USAA’s mission to enhance the financial security of our country’s military service men and women and their families.

“Both of our companies share a commitment to integrity and service, and both have strong track records of achievement for those we serve, which is why we believe this relationship makes so much sense for everyone involved.”

The latest deal comes shortly after Victory Capital’s takeover of USAA Asset Management Company. The deal covers USAA’s mutual fund and ETF businesses as well as its 529 College Savings Plan.