Ameritrade's $1.4 bln bid wins Datek auction-sources
(Reuters 04/07 21:58:44)
NEW YORK, April 7 (Reuters) - Ameritrade Holding Corp
<AMTD.O> has agreed to buy rival online brokerage Datek Online
Holdings Corp for about $1.4 billion, sources close to the
situation said on Sunday, aiming to gain additional scale as it
tries to combat an ongoing industry slump.
The transaction, which ends an intense three-month auction
for the closely held Datek, will leave Ameritrade with about
2.5 million online trading accounts, ranking it just below
industry stalwarts E*Trade Group <ET.N> and TD Waterhouse.
It also represents a significant victory for the Omaha,
Nebraska-based Ameritrade, which outbid several rivals in its
quest to acquire Datek to help stabilise its revenue and
earning stream amid the continuing volatility on Wall Street.
The deal is expected to be announced on Monday morning,
sources said.
Ameritrade and the Jersey City, N.J.-based Datek, which is
owned by a consortium of private equity firms including Bain
Capital, could not immediately be reached for comment.
((Tom Johnson, New York Mergers and Acquisitions desk,
(646) 223-6141))
REUTERS |
