TD Ameritrade to Acquire Scottrade
October 24 2016 - 7:10AM
Dow Jones News
TD Ameritrade Holding Corp. will buy Scottrade Financial
Services Inc. in a $4 billion deal, combining two leaders in the
retail market for the buying and selling of stocks as the landscape
for stock picking continues to lose favor to index investing.
Both companies helped bring low-cost stock trading to small-time
investors and away from the exclusive world of brokerage that
existed before.
The combined company will have 600,000 average client trades a
day and $944 billion in client assets.
The deal will happen in two parts. First, TD Bank Group, which
owns a large stake in TD Ameritrade, will purchase Scottrade Bank
from Scottrade Financial Services for $1.3 billion in cash. TD Bank
Group will also purchase $400 million in new common equity from TD
Ameritrade in connection with the deal. Then, immediately following
that acquisition, TD Ameritrade will acquire Scottrade Financial
Services Inc. for $4 billion, or $2.7 billion after the proceeds
from the sale of Scottrade Bank.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
October 24, 2016 06:55 ET (10:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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