Online broker TD Ameritrade in $4bn takeover of rival Scottrade
TD Ameritrade has agreed a $4bn (£3.2bn) deal to acquire Scottrade Financial Services, bringing together two online brokerage giants.
Under the deal, TD Ameritrade’s biggest shareholder, Toronto-Dominion Bank (TD Bank), will acquire Scottrade’s online bank for $1.3bn in cash.
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Immediately after that acquisition, TD Ameritrade will acquire Scottrade Financial Services for $2.7bn.
The firms expect to complete the deal by 30 September next year and make around $450m in annual savings.
Together, the two businesses currently have 600,000 client trades a day on average, $944bn in total client assets and 10m funded accounts.
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Tim Hockey, TD Ameritrade president and chief executive, said:
We’ve found in Scottrade a partner with an equally-strong passion and a proven track record for delivering exceptional client experiences.
This combination will allow us to leverage our strengths and increase our scale, further accelerate our asset gathering capabilities and introduce our award-winning line-up of trading tools, products and education services to millions of new investors.