TD Ameritrade Holdings Corp.'s CEO Fred Tomczyk said his firm has "a strong, stable balance sheet. We are well-capitalized. We have strong cash flow -- all of which put us in a unique position to be opportunistic in the current economic environment." The online brokerage is paying
$606 million in cash and stock for Thinkorswim Inc., a developer of professional-level trading software and trade execution services for the options industry.
The purchase price, which is about a 54% premium to Thinkorswim's Wednesday closing price, includes $225 million in cash and about 28 million shares of TD's common stock.
Omaha-based TD Ameritrade says this deal advances its trading strategy by several years by offering new trading functionality for traders, including advanced options trading, futures, foreign exchange trading and portfolio margining.
In early 2007, Thinkorswim
completed its merger with investor education company Investools Inc. Over the 12-month period ended Sept. 30, Thinkorswim generated $380 million in revenue. It has around 87,000 funded retail brokerage accounts and more than $3 billion in client assets.
The deal is expected to close in June and is subject to customary approvals. -
Baz HiralalGo to the deal announcementTD Bank Financial Group voices approval
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