Momentum Securities, Inc.
June 30, 1999
TRADESCAPE.com TO RECEIVE INVESTMENT FROM J.W. CHILDS AND SOFTBANK
NEW YORK -- June 30, 1999 -- TRADESCAPE.com, a premier provider of online financial services serving the needs of high volume day traders and active online investors, announced today that J.W. Childs Associates, L. P. and a fund managed by SOFTBANK have agreed to investare the lead investors in a $40 million investment in the company. Proceeds will be used to continue the firm's rapid expansion through both internal growth and strategic acquisitions.
TRADESCAPE.com is also pleased to announce that Michael A. Dritz will become chairman of TRADESCAPE.com effective immediately. Mr. Dritz's distinguished career spanned spans four decades in the financial services industry. in positions such as managing director, Equity Markets and chairman, Smith Brothers International Advisory Services Inc. at Merrill Lynch & Co.; president and chief executive officer of Smith New Court Inc., which was acquired by Merrill Lynch & Co. in 1995; and, founder of Dritz Enterprises, L.L.C., an investment firm which also provides financial and business management consulting. His notable experiences include: founder and chairmansenior partner of Dritz, Goldring Inc& Co., a NYSE and AMEX specialist firm which [prior to be acquired in 1981 was one of the largest specialist operators on the AMEXat one time][which during the 1970's was] the largest specialist operator on the AMEX; president and CEO of Smith New Court, Inc., the US subsidiary of Smith New Court plc which was acquired by Merrill Lynch in 1995; and managing director, Equity Markets at Merrill Lynch.
A Shared Vision
TRADESCAPE.com has developed FirstLevelTM , one of the industry's most sophisticated online systems for executing trade orders. The system couples real-time streaming data with the company's proprietary Electronic Communications Network Portal (ECPTM ). Through Tthe ECPTM, TRADESCAPE.com intelligently routes orders to the best price execution with instantaneous speed by interfacing withproviding direct access to many sources of liquidity, including Nasdaq, Electronic Communications Networks (ECNs) and the NYSE.
In addition, TRADESCAPE.com, offers over 25,000 online Internet subscribers interactive investment tools including free Level II quotes, real time portfolio management tools, and real-time intraday charts. Qualified online investors are able to execute trades utilizing TRADESCAPE.com's ECPTM bringing professional and institutional trading capabilities to the retail investor.
TRADESCAPE.com also announced today that it has entered into a definitive agreement to acquire Houston-based Momentum Securities. The combined companies will be the world's largest online day trading brokerage, processing nearly 90,000 trades per day, aggregating approximately $25 billion of equity transactions per month.
"We are delighted that two of today's most successful investment firms have chosen to invest in TRADESCAPE.com. All of this is designed to serve the most active traders and institutions seeking the best and fastest executions, as well as lower transaction costs," said Omar S. Amanat, chief executive officer. "Clearly, they share our vision of this rapidly growing market and recognize that we are ideally positioned as the leading destination for online traders and high volume investors who seek real opportunities in real time."
"TRADESCAPE.com has developed superior technology in a rapidly growing, [inefficient] market, a combination which that provides virtually unlimited growth potential," said John W. Childs, president of J. W. Childs. The initial $40 million investment, together with the ability to provide additional investments capital as appropriate, will allow TRADESCAPE.com to continue to expand to meet the needs of traders and investors in this rapidly growing sector.
"Our level of commitment to the company is intended to help TRADESCAPE.com increase its hold as the market leader with the most sophisticated technology platform for the professional online day trader and other serious investors," said Yoshitaka Kitao, chief executive officer of SOFTBANK FINANCE CORPORATION and chief financial officer of SOFTBANK CORP. "This strategic investment fits well within our portfolio of companies in the Internet financial services space."
J.W. Childs Associates, L.P., is a leading private equity investment firm specializing in leveraged buyouts and growth equity investments in middle-market growth companies in partnership with company management. Since 1987, the partners of J.W. Childs have invested in 25 companies, including American Safety Razor Company, Dobson Communications Corp., Beltone Electronics Corp., Snapple Beverage Corp. and General Nutrition Companies and with a total transaction value of over $3.5 billion. The firm presently manages over $1.5 billion of equity capital from leading financial institutions, pension funds and endowments.
The investment in TRADESCAPE.com is the latest in a series of strategic Internet
initiatives by the SOFTBANK Group. Founded in 1981, SOFTBANK CORP. is a leading global provider of Internet content, technology, and financial services through strategic holdings in a broad range of companies. SOFTBANK has achieved this status through a combination of significant direct equity ownership positions in leading Internet companies -- 69% of Ziff-Davis, Inc., 26% of Yahoo! Inc., 80% of Kingston Technology Company, and 27% of E*Trade Group, Inc., among others; a broad range of Internet joint ventures in Japan; including Nasdaq-Japan and more than 85 other investments, including those of SOFTBANK Technology Ventures Inc. These Internet holdings, combined with pre-eminent positions in the areas of media and marketing, outsourced technology services, and PC and network distribution and digital satellite services in Asia, have made SOFTBANK a major force in the digital information industry.
Headquartered in New York City, TRADESCAPE.com is the leading provider of next generation online trading systems and technology for professional day traders and active online investors who seek real opportunities in real time. TRADESCAPE.com, offers over 25,000 online Internet subscribers interactive investment tools including free Level II quotes, real time portfolio management, and real-time intraday charts. Qualified online investors are able to execute trades utilizing TRADESCAPE.com's ECPâ bringing professional and institutional trading capabilities to the retail investor.
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