"Island to Receive $25 Million Investment From Waterhouse"
NEW YORK--(BUSINESS WIRE)--May 11, 1999--The Island ECN, Inc. announced today that it has reached an agreement to receive a $25 million investment from Waterhouse Investor Services, Inc., whose discount brokerage business, together with its affiliates, comprise the world's second largest discount brokerage business.
The two companies have reached an agreement in principle, expected to close within 60 days, that gives Waterhouse a 12.5 percent stake in Island, the second largest alternative trading system.
The investment will be used to aid Island in building its infrastructure as it moves towards filing for stock exchange status. Island announced on April 30 that it had met with Securities and Exchange Commission officials to outline the initial regulatory framework for its proposed national securities exchange. Island expects to complete its filing with the SEC within two months and, if approved, will operate the nation's first proprietary stock exchange.
''Our partnership with Waterhouse is a natural fit,'' said Jeff Citron, co-founder of Island. ''Both companies are committed to serving the retail market and helping investors achieve optimum execution of their trades.'' Matt Andresen, president of Island, added: ''Waterhouse's investment will help solidify Island's position as a leading alternative trading system in the market today.''
Waterhouse President Frank J. Petrilli said the relationship with Island will allow his firm to play an integral role in enhancing the investment capabilities of the individual investor. ''We view this as a strategic investment, which underscores our belief in the value and future of ECNs and our confidence in Island as a leader in this industry, Petrilli said..."
SOURCE: © 1999 Tuesday May 11, 7:02 am Eastern Time Company Press Release
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