TD Ameritrade Holding Corp. has agreed to buy online brokerage firm thinkorswim Group in a cash and stock deal valued at about US$606 million.
TD Ameritrade, based in Omaha, Neb., said it is the industry leader in the number of equity trades placed each day, while New York-based thinkorswim leads in the daily number of retail option trades.
“This deal advances TD Ameritrade’s growth strategy for its active trader client segment by introducing new trading functionality for traders, including advanced options trading, futures, foreign exchange trading and portfolio margining,” said the company in a statement.
The deal is expected to close within six months, following regulatory and thinkorswim shareholder approvals, as well as customary closing
conditions.
Commenting on the deal, Ed Clark, president and CEO of TD Bank Financial Group, stated “We believe this will be a great opportunity for TD Ameritrade and its customers. This acquisition will accelerate TD Ameritrade’s growth, as well as enhance its position in the options trading market and the investor education space.”
The transaction is not expected to materially affect TD Bank’s earnings, nor to have a material capital impact, the bank said.
TD Americtrade has declared its intention to initiate a new stock buyback program, which combined with the thinkorswim acquisition, will leave TD Bank’s ownership in TD Ameritrade materially unchanged.
IE
TD Ameritrade buys options broker
US$606 million cash and stock deal for thinkorswim
- By: IE Staff
- January 8, 2009 January 8, 2009
- 10:10