TD Waterhouse Group is buying Omaha, Neb.-based R.J. Thompson Holdings Inc., a privately held direct access brokerage firm.

RJT will continue to operate in Omaha as a separate unit serving the needs of active traders. The brokerage provides direct access to market makers and electronic communications networks; automatic updates of account information for immediate notification of executions, order modifications and other essential account information; and streaming real-time market data and level II quotes.

Financial terms for the all-cash deal were not disclosed. TD Waterhouse expects the acquisition could cost up to four cents a share in the first year after acquisition due to retention and performance incentives as well as financing costs, and will be accretive thereafter. The transaction is expected to close in the fourth fiscal quarter of 2001.

RJT’s technology is slated to be integrated into TD Waterhouse’s U.S. platform in the first half of 2002, providing TD Waterhouse’s active customers with access to many of the features currently available through RJT. Prior to completion of this integration, TD Waterhouse’s customers who would like to take advantage of RJT’s platform are encouraged to open a separate account with RJT.

“The acquisition of RJT is an excellent opportunity for us to further expand our presence in the active trader arena, one of the most vibrant segments of the market,” said Steve McDonald, CEO of TD Waterhouse. “Offering customized services for specific investor groups will help drive success in our industry and this acquisition leaves TD Waterhouse well positioned to capitalize on this developing dynamic.”

Richard J. Rzasa, chief information officer of TD Waterhouse, added, “Direct access to market makers and ECNs is a priority for many active traders. Through the acquisition of RJT, we will build a leading-edge offering for this segment by expanding on the functionality of RJT’s direct access platform, and over time combining it with the robust product, service and technology offerings TD Waterhouse already has in place.”

As part of the agreement, Randy Thompson and Greg Gilgenast of RJT will join TD Waterhouse as managing director, active trader division and senior vice-president. “RJT’s trading platform was developed to meet active traders demand for quick, reliable order execution, dynamically updating account information and direct access to the markets,” said Thompson, CEO of RJT. “Joining the TD Waterhouse family offers a unique opportunity for us to continue developing new technology solutions, while leveraging their experience and resources.”