Business | General
Ameritrade acquires Thinkorswim for $606m
TD Ameritrade Holdings, the third-biggest US online brokerage by assets, said it agreed to acquire Thinkorswim Group for about $606 million to tap into investor interest in the fast-growing options market.
- Bloomberg
- Published: 23:38 January 8, 2009
New York: TD Ameritrade Holdings, the third-biggest US online brokerage by assets, said it agreed to acquire Thinkorswim Group for about $606 million to tap into investor interest in the fast-growing options market.
The deal includes $225 million in cash and the issuance of about 28 million shares of TD Ameritrade common stock, the Omaha, Nebraska-based company said.
TD Ameritrade is paying about $8.71 a share for New York-based Thinkorswim, 54 per cent higher than the closing price yesterday.
Chief executive Fredric Tomczyk is seeking to bolster TD Ameritrade's appeal among active retail traders by adding more sophisticated options trading systems.
Ameritrade shares declined 50 cents, or 3.7 per cent, to $12.98 at 8:35 am in New York in trading before the official open of US exchanges.
The transaction will start adding to earnings in 2010, generating savings and additional revenue of about $55 million.
Share this article
More from Business General
More from Business
Popular in Business
-
General
Precious jump
Gold prices at new high as India's central bank buys $6.7b worth of gold
Business Editor's choice
-
Sweet life in the Middle East
A sweet look at the confectionary industry in the UAE and Middle East
-
Passion for pets can be expensive
Responsibility and time spent add to costs for furry friends
-
Facebook farm game under cloud
Mobile phone contracts can be used to buy virtual money
