Leadership team focused on client care and a
timely, seamless transition
TD Ameritrade Holding Corporation (Nasdaq: AMTD) announced today
that it has completed its acquisition of Scottrade Financial
Services, Inc.
For TD Ameritrade, the transaction adds significant scale and
distribution capabilities for its investing services and education.
The combination of its award-winning trading technology and
long-term investing solutions with Scottrade’s larger branch
network is expected to enhance the investing experience for
millions of investors.
The newly-combined company serves nearly 11 million client
accounts holding $1.1 trillion in assets.1
“Now the hard work really begins,” said Tim Hockey, president
and chief executive officer of TD Ameritrade. “Scottrade is so well
known for outstanding client care – a credit to the culture that
Rodger Riney and thousands of Scottrade employees have built over
the last 37 years. It’s on us to continue that tradition. We want
their clients to know that talented people are focused on making
the transition as seamless as possible. We can’t wait to share what
we love best about TD Ameritrade so they can continue investing in
the things that matter most to them.”
Impact to the Client Experience
TD Ameritrade has established an integration team to transition
Scottrade client accounts to TD Ameritrade’s platforms and
operating systems, with a final conversion anticipated in the
second quarter of the company’s 2018 fiscal year (January-March,
2018).
Until that time it remains business as usual. Scottrade clients
should continue to use their same accounts, invest and manage their
money as they do today. Scottrade branches and service teams will
continue serving Scottrade clients and accounts throughout the
conversion. Brokerage accounts will automatically transfer to TD
Ameritrade as part of the transition process, with communications
planned to inform, educate and support clients every step of the
way.
“We’re 100 percent focused on a smooth transition, paying
special attention to the service all clients receive today – and
making plans to enhance it further in the future,” Hockey
continued. “That means being clear and transparent, and making sure
clients know what to expect.”
Once the conversion is complete, clients will have access to TD
Ameritrade’s investing, education and support solutions, which
include:
- Award-winning trading platforms and
mobile trading apps;
- More diverse trading products, like
complex options, futures and foreign exchange;
- More investment guidance and advice,
like free goal planning services, “robo” advice and managed
portfolios;
- Deeper investor education offerings,
including webcasts, classroom learning, paper trading and 1:1
coaching; and
- Hundreds of branches nationwide,
allowing clients to seek their preferred mix of high-tech,
high-touch service.
Scottrade clients with questions about the transition can visit
their local branch, contact their local Scottrade team at
800-619-7283, or visit a special online Welcome Center for
information and updates.
Leadership Changes
Effective immediately, Scottrade Founder and Chief Executive
Officer Rodger Riney will take on a new role as Special Advisor to
the President & CEO of TD Ameritrade. In this role, Riney will
interact with Hockey on matters related to the business,
integration and the company’s clients. Riney will remain in St.
Louis, along with fellow Scottrade executive Peter deSilva, whose
role with the combined company was previously disclosed. He will
continue representing the company in the community and may take on
other special projects as requested.
“Rodger Riney is one of the few people who can say he helped
create an industry,” Hockey concluded. “We’re thrilled that he has
decided to stay on to share his perspective with me and the rest of
our management team. His expertise and counsel will prove
invaluable as we bring these two companies together and develop a
winning strategy for the months and years to come.”
“I have seen the careful planning that has been done thus far to
plan for a seamless experience for our clients and associates. We
are now one team and I am confident the combined organization has a
strong future. I will be here to support Tim in any way I can,”
Riney said. “I have often said that our associates were the ‘secret
sauce’ at Scottrade, and I am humbly grateful for their hard work
and dedication to our clients through the years. To our clients,
thank you for your business and your loyalty. I have enjoyed every
minute of helping you overcome barriers to financial success. You
remain in good hands.”
Financial Impact
Per the terms of the deal, immediately prior to the closing of
the acquisition, TD Bank, N.A., a subsidiary of The
Toronto-Dominion Bank (“TD”), purchased Scottrade’s bank
subsidiary, Scottrade Bank, from Scottrade for approximately $1.4
billion in cash, subject to a customary post-closing adjustment
process. TD Ameritrade then acquired Scottrade for approximately 28
million shares of TD Ameritrade stock and approximately $1.7
billion in cash (net of the cash consideration paid by TD Bank,
N.A., for Scottrade Bank).
More information about the transaction is available on a special
Scottrade page located within the newsroom at www.amtd.com. Details
regarding TD Ameritrade’s outlook for fiscal 2018 will be made
available when the company releases its fourth quarter earnings in
October.
Barclays Capital Inc. served as financial advisor to TD
Ameritrade, and Wachtell, Lipton, Rosen & Katz served as legal
advisor to TD Ameritrade. Goldman, Sachs & Co. served as
financial advisor to Scottrade, and Sullivan & Cromwell served
as legal advisor to Scottrade.
Source: TD Ameritrade Holding Corporation
About TD Ameritrade Holding Corporation
Millions of investors and independent registered investment
advisors (RIAs) have turned to TD Ameritrade’s (Nasdaq: AMTD)
technology, people and education to help make investing and trading
easier to understand and do. Online or over the phone. In a branch
or with an independent RIA. First-timer or sophisticated trader.
Our clients want to take control, and we help them decide how -
bringing Wall Street to Main Street for more than 40 years.
TD Ameritrade has time and again been recognized as a leader
in investment services. Please visit TD Ameritrade's newsroom
or www.amtd.com for more information, or read our stories at Fresh
Accounts.
Brokerage services provided by TD Ameritrade, Inc., member
FINRA (www.FINRA.org)/SIPC (www.SIPC.org).
1 As of Aug. 31, 2017.
Safe HarborThis document contains forward-looking
statements within the meaning of the federal securities laws. We
intend these forward-looking statements to be covered by the safe
harbor provisions of the federal securities laws. In particular,
any projections regarding our future revenues, expenses, earnings,
capital expenditures, effective tax rates, client trading activity,
accounts, stock price or any projections or expectations regarding
the acquisition of Scottrade Financial Services, Inc., as well as
the assumptions on which such expectations are based, are
forward-looking statements. These statements reflect only our
current expectations and are not guarantees of future performance
or results. These statements involve risks, uncertainties and
assumptions that could cause actual results or performance to
differ materially from those contained in the forward-looking
statements. These risks, uncertainties and assumptions include, but
are not limited to: general economic and political conditions and
other securities industry risks, fluctuations in interest rates,
stock market fluctuations and changes in client trading activity,
credit risk with clients and counterparties, increased competition,
systems failures, delays and capacity constraints, network security
risks, liquidity risks, new laws and regulations affecting our
business, regulatory and legal matters, difficulties and delays in
integrating the Scottrade business or fully realizing cost savings
and other benefits from the acquisition; business disruption
following the Scottrade acquisition, changes in asset quality and
credit risk, the inability to sustain revenue and earnings growth,
changes in interest rates and capital markets, inflation, customer
borrowing, repayment, investment and deposit practices, customer
disintermediation, the introduction, withdrawal, success and timing
of business initiatives, competitive conditions, disruptions due to
Scottrade integration-related uncertainty or other factors making
it more difficult to maintain relationships with employees,
customers, other business partners or governmental entities, the
inability to realize synergies or to implement integration plans
and other consequences associated with mergers, acquisitions and
uncertainties and other risk factors described in our latest Annual
Report on Form 10-K, filed with the SEC on Nov. 18, 2016, in our
Quarterly Reports on Form 10-Q filed thereafter and in our other
filings with the SEC. These forward-looking statements speak only
as of the date on which the statements were made. We undertake no
obligation to update or revise publicly any forward-looking
statements, whether as a result of new information, future events
or otherwise, except to the extent required by the federal
securities laws.
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version on businesswire.com: http://www.businesswire.com/news/home/20170918006375/en/
TD Ameritrade Holding CorporationFor Media:Kim
Hillyer, 402-574-6523Director, Corporate
Communicationskim.hillyer@tdameritrade.com@TDAmeritradePRorFor
Investors:Jeff Goeser, 402-597-8464Director, Investor
Relationsjeffrey.goeser@tdameritrade.com
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