Schwab Finalizes Acquisition of Forge Global, Expands Private Market Services

Charles Schwab Finalizes Acquisition of Forge Global Holdings

Charles Schwab (SCHW) has officially completed its purchase of Forge Global Holdings, Inc. The deal, which was paid entirely in cash and valued at $660 million, was first made public in November 2025.

Forge, a California-based company, provides accredited investors with a variety of ways to participate in private markets. By combining a direct marketplace, specialized solutions for private companies, and exclusive data, Forge improves both access and transparency for qualified investors looking to enter the private market space.

Key Aspects of the Schwab-Forge Transaction

According to the terms of the acquisition, Schwab paid $45 in cash for every Forge share. When the deal was announced, Schwab indicated plans to make Forge’s offerings available to select ultra-high-net-worth clients, launch ’40 Act funds to expand private market access, and continue developing its integrated platform.

In the short term, Schwab intends to provide access to over one million retail customers and registered investment advisers (RIAs), with the goal of eventually reaching all eligible investors and enhancing its proprietary and stock-plan solutions in the medium term.

Rick Wurster, Schwab’s president and CEO, commented, “We see tremendous potential in enabling more individuals to directly benefit from the growth of private companies. This acquisition strengthens our alternative investments platform, delivering greater access, value, and transparency to private markets—just as Schwab has historically done for public markets.”

Strategic Motivation for Schwab’s Acquisition

This purchase supports Schwab’s broader strategy to offer private market investment options to both retail and advisory clients, leveraging its comprehensive wealth, advisory, and investment management services to address increasingly complex investor needs.

By integrating Forge’s direct access to private securities, Schwab builds upon its Alternative Investments Select platform, which is available to retail clients with household assets exceeding $5 million. The move is designed to take advantage of ongoing growth in private markets, as more investors seek early-stage opportunities in high-growth startups for better returns and portfolio diversification.

Additionally, the acquisition is expected to diversify Schwab’s revenue streams. As private market activity increases, Schwab anticipates a boost in revenues. In line with this approach, last year SCHW introduced Schwab Private Issuer Equity Services, a comprehensive equity management solution for private companies preparing for an IPO.

Schwab’s Recent Stock Performance and Analyst Rating

Over the past six months, Schwab’s share price has climbed 3.5%, while the broader industry saw a 4.8% increase.

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Currently, Schwab holds a Zacks Rank #2 (Buy). For a full list of today’s Zacks #1 Rank (Strong Buy) stocks, click here.

Other Financial Firms Pursuing Acquisitions

In January, Prosperity Bancshares, Inc. (PB) finalized its acquisition of American Bank Holding Corporation (ABHC) and its subsidiary, American Bank. The operational integration is expected to be completed by September 2026.

Prosperity Bancshares first announced the $321.5 million all-stock merger with ABHC on July 18, 2025, aiming to expand its reach throughout South and Central Texas, including Corpus Christi, San Antonio, and Austin. Upon closing, Prosperity Bancshares issued over 4.4 million shares to ABHC’s former shareholders and award holders. The merger added $2.3 billion in deposits and $1.8 billion in loans to the combined company.

Commerce Bancshares, Inc. (CBSH) also completed its all-stock acquisition of FineMark Holdings, announced in June 2025. The full integration of operational systems is set for the second half of 2026. This deal allows Commerce Bancshares to significantly grow its private banking and wealth management business, strengthening its presence in Florida and expanding into new markets such as Arizona and South Carolina.

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Additional Resources

• Charles Schwab Corporation (SCHW): Free Stock Analysis Report
• Commerce Bancshares, Inc. (CBSH): Free Stock Analysis Report
• Prosperity Bancshares, Inc. (PB): Free Stock Analysis Report

Original article published by Zacks Investment Research

Zacks Investment Research