Schwab to Buy SoundView Technology
Charles Schwab Corp. said it would buy investment research firm SoundView Technology Group Inc. for about $321 million, adding a stable of analysts who primarily follow tech firms.
Schwab’s plan initially is to provide SoundView’s research to the brokerage’s institutional clients. Analysts said Schwab hoped to bring in more trading business from those clients, as trading by small investors remains well below its peak in 2000.
Schwab would pay $15.50 a share in cash. Shares of Old Greenwich, Conn.-based SoundView jumped $2.16, or 16.3%, to $15.41 on Nasdaq. San Francisco-based Schwab slipped 8 cents to $11.34 on the New York Stock Exchange.