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Ameritrade to Merge with Datek
The nation's two largest online stock brokers today stated their intention to merge. Ameritrade Holding Corporation (Nasdaq:AMTD) and Datek Online Holdings announced an agreement that creates the largest online brokerage serving self-directed investors.
Under the agreement, shareholders of the new Ameritrade receive a single class of common stock, with the owners of Datek receiving 50% of the total outstanding capital stock. The value of the transaction is approximately $1.3b based on the closing price of Ameritrade stock as of April 5, net of the acquisition of cash plus regulatory capital valued at $100m. Principal owners of Datek include the private equity firms Bain Capital, TA Associates and Silver Lake Partners.
"This is a wonderful day for our Company," said J. Joe Ricketts, Ameritrade's chairman and founder. "This announcement marks an extraordinary advancement in Ameritrade's 27-year history of building a premier financial institution in the online brokerage industry."
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