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Schwab to Buy Motif's Technology in All-Cash Deal

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Less than three weeks after Motif announced it was shutting down its robo-advisor platform, Charles Schwab announced that it has entered into an asset purchase agreement to acquire Motif’s technology and intellectual property in an all cash transaction.

Terms were not disclosed. The transaction is expected to close by the middle of 2020, subject to customary closing conditions, and will include all of Motif’s algorithms, patents and source code. Motif focused on customized thematic portfolios to investors. 

Its broker-dealer, RIA, client accounts and client assets are not included in the Schwab acquisition. Its client accounts have been sold to Folio Investments.

As part of the Motif acquisition,  Schwab will be hiring a majority of Motif’s development and investment talent, including Motif’s Founder and CEO, Hardeep Walia.

“As a company with a deep history of innovating to improve the financial lives of investors, we are thrilled to bring transformative technology to Schwab to help our clients navigate their investment needs in a more personal way,” said Neesha Hathi, EVP and Chief Digital Officer at Schwab.  

“We continue to see an increasing number of clients interested in customizing their investing experience to suit their values, objectives and personal circumstances. 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.”

Motif,  is a fintech pioneer that has combined breakthrough technology and data science to deliver customized thematic portfolios to investors. 

Walia was equally excited. “Schwab shares our spirit and passion for making personalized investing easier and more accessible for all. We’re excited to join them in helping to shape the future of wealth management to better serve investors.”

In addition to thematic investing, Motif’s technology platform offers investors the flexibility to personalize investments, supports real-time fractional share trading and can help enable sophisticated tax optimization strategies within investment portfolios.


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