TD Ameritrade Completes Acquisition of Scottrade Financial Services, Inc.
OMAHA, Neb .– (COMMERCIAL THREAD) – TD Ameritrade Holding Corporation (Nasdaq: AMTD) today announced that it has completed the acquisition of Scottrade Financial Services, Inc.
For TD Ameritrade, the transaction adds significant scale and distribution capabilities to its investment services and training. The combination of its award-winning trading technology and long-term investment solutions with Scottrade’s largest branch network is expected to improve the investment experience for millions of investors.
The newly consolidated company serves nearly 11 million accounts receivable with $ 1.1 trillion in assets.1
“Now the hard work really begins,” said Tim Hockey, President and CEO of TD Ameritrade. “Scottrade is so well known for its exceptional customer service – a credit to the culture Rodger Riney and thousands of Scottrade employees have built over the past 37 years. It is up to us to carry on this tradition. We want their clients to know that talented people are striving to make the transition as smooth as possible. We look forward to sharing what we love most about TD Ameritrade so they can continue to invest in the things that matter most to them.
Impact on customer experience
TD Ameritrade has put in place an integration team to transition Scottrade accounts receivable to TD Ameritrade platforms and operating systems, with a final conversion expected in the company’s second quarter of fiscal 2018 (January -March 2018).
Until then, it remains as usual. Scottrade clients should continue to use their same accounts, investing and managing their money as they do today. Scottrade branches and service teams will continue to serve Scottrade customers 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 are 100% focused on a smooth transition, paying special attention to the service all customers receive today – and make plans to improve it further in the future, ”continued Hockey. “It means being clear and transparent, and making sure customers know what to expect. ”
Upon completion of the conversion, clients will have access to TD Ameritrade investment, training and support solutions, which include:
Award-winning mobile trading platforms and applications;
More diversified trading products, such as complex options, futures and foreign currencies;
More investment guidance and advice, such as free goal planning services, robot advice and managed portfolios;
More in-depth training offerings for investors, including webcasts, classroom learning, paper-based exchanges and 1: 1 coaching; and
Hundreds of branches across the country, allowing customers to search for their preferred combination of high-tech and high-touch services.
Scottrade customers who have 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.
Effective today, Scottrade Founder and CEO Rodger Riney will assume the new role of Special Advisor to the President and CEO of TD Ameritrade. In this role, Riney will interact with Hockey on matters relating to the business, integration and customers of the business. Riney will remain in St. Louis, along with Peter deSilva, another Scottrade executive, whose role in the combined company was previously disclosed. He will continue to represent the company in the community and can take on other special projects upon request.
“Rodger Riney is one of the few people who can say he helped build an industry,” Hockey concluded. “We are delighted that he has decided to stay to share his perspective with me and the rest of our management team. His expertise and advice 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 so far to plan a seamless experience for our clients and associates. We are now one team and I am convinced that the combined organization has a strong future. I will be there to support Tim in any way I can, ”said Riney. “I have often said that our associates are the ‘secret sauce’ at Scottrade, and I am humbly grateful for their hard work and dedication to our clients over the years. To our customers, thank you for your business and your loyalty. I appreciated every minute of helping you overcome the barriers to financial success. You stay in good hands.
Under the terms of the agreement, immediately prior to the closing of the Acquisition, TD Bank, NA, a subsidiary of The Toronto-Dominion Bank (“TD”), purchased Scottrade’s banking subsidiary, Scottrade Bank, from Scottrade for approximately $ 1.4 billion in cash, subject to customary post-closing adjustment process. TD Ameritrade then acquired Scottrade for approximately 28 million shares of TD Ameritrade and approximately $ 1.7 billion in cash (net of the cash consideration paid by TD Bank, NA, for Scottrade Bank).
More information about the transaction is available on a special Scottrade page located in the press room at www.amtd.com. Details of TD Ameritrade’s outlook for fiscal 2018 will be available when the company releases its fourth quarter results in October.
Barclays Capital Inc. acted as financial advisor to TD Ameritrade, and Wachtell, Lipton, Rosen & Katz acted 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 Company
About TD Ameritrade Holding Company
Millions of investors and independent registered investment advisers (RIAs) have turned to technology, people and education from TD Ameritrade (Nasdaq: AMTD) to help make investing and trading easier to understand and to do. Online or by phone. In branch or with an independent RIA. Beginner or experienced trader. Our clients want to take control, and we’ve been helping them decide how – to get Wall Street to Main Street for over 40 years. TD Ameritrade has repeatedly been recognized as a leader in investment services. Please visit the TD Ameritrade press room or www.amtd.com for more information, or read our articles on Fresh Accounts.
Brokerage services provided by TD Ameritrade, Inc., member of FINRA (www.FINRA.org) / SIPC (www.SIPC.org).
1 As of August 31, 2017.
This document contains forward-looking statements within the meaning of federal securities laws. We intend that these forward-looking statements be covered by the safe harbor provisions of federal securities laws. In particular, any projections regarding our future income, expenses, profits, capital expenses, effective tax rates, client business activity, accounts, share price or any projections or expectations regarding the acquisition of Scottrade Financial Services, Inc., and the assumptions on which these expectations are based, are forward-looking statements. These statements reflect our current expectations only 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 forward-looking statements. These risks, uncertainties and assumptions include, but are not limited to: general economic and political conditions and other risks relating to the securities industry, fluctuations in interest rates, fluctuations in stock markets and changes in the activities of customer negotiation, credit risk with customers and counterparties, increased competition, system 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 the cost savings and other benefits of the acquisition; business disruption following the Scottrade acquisition, changes in asset quality and credit risk, inability to sustain growth in income and earnings, changes in interest rates and capital markets, inflation, corporate borrowing customers, reimbursement, investment and deposit practices, customer disintermediation, introduction, withdrawal, success and timing of business initiatives, competitive conditions, disruption due to uncertainty of Scottrade integration or other factors making it more difficult to maintain relationships with employees, customers, other business partners or government entities, the inability to achieve synergies or 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 November 18 2016, in our Quarterly Reports on Form 10-Q subsequently filed and in our other documents filed with the SEC. These forward-looking statements speak only as of the date on which the statements were made. We assume no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by federal securities laws.