Building a bigger brokerage
TD Ameritrade is buying Scottrade in a $4 billion deal that would expand the online brokerage firm’s retail and branch business.
In the two-stage deal, TD Bank Group will buy Scottrade Bank first from Scottrade Financial Services for $1.3 billion in cash. Then, TD Ameritrade will buy Scottrade Financial Services for $2.7 billion in cash and stock. Part of that purchase will be financed by selling 11 million shares to TD Bank, which will continue to control 41 percent of TD Ameritrade’s stock.
TD Ameritrade said that the transaction will more than quadruple the size of its network of about 100 branch offices. TD Ameritrade’s shares fell Monday following the announcement, along with other online brokerage firms.