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.
More from Business General
More from Business
Business Editor's choice
-
Do unemployment figures flatter to deceive?
Jobseekers and recruiters give out mixed signals ranging from optimism to downright despair even as official data show recovery
-
Banks can increase their share
Longer opening hours, more locations outside cities and lower charges can help
-
Geepas idea blossomed in Dubai
The journey led from a small shop in Bahrain to a $1.27b company in the UAE
