The Charles Schwab Corp. (SCHW) agreed to buy assets of USAA's Investment Management Company for $1.8 billion, the company said in a news release late Thursday.
Under the deal, Schwab will acquire 1 million brokerage and managed portfolio accounts from USAA representing about $90 billion in client assets.
The transaction is expected to close in 2020, subject to regulatory approval.
Schwab says the deal will be "modestly accretive to EPS on a cash basis by year one and on a GAAP basis by year two."
USAA provides insurance and financial services to active and former members of the U.S. military and their families.
Shares of Schwab edged up in after-hours trading, rising 11 cents, or 0.25%, to $44.18.