OMAHA, Neb.--(BUSINESS WIRE)--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 Harbor
This 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.
