Mon, Oct. 24, 6:11 AM
- As floated on Sunday, Scottrade has been sold to TD Ameritrade (NASDAQ:AMTD) for $4B. The deal will take place in two stages, with TD Bank (NYSE:TD) first buying Scottrade Bank for $1.3B in cash, and then Ameritrade purchasing Scottrade Financial Services for $4B, or $2.7B of stock and cash net of the proceeds of the bank sale.
- Ameritrade will issue $1B in new stock (28M shares) to Scottrade, and the $1.7B in cash will include $900M of its own money, $400M in new debt, and $400M raised by selling another 11M shares to TD Bank.
- Thanks to about $450M in combined annual expense synergies, Ameritrade expects 15-20% adjusted EPS accretion in years two and three following the close. Another $300M in longer-term cost savings are hoped for as well.
- A conference call is set for 8:30 ET.
Sun, Oct. 23, 8:57 PM
- TD Ameritrade (NASDAQ:AMTD) would acquire Scottrade's brokerage operations for about $2.7B in cash and stock, and TD Bank (NYSE:TD) would pick up Scottrade's banking business for $1.3B in cash, reports Bloomberg. TD Bank owns roughly 42% of Ameritrade.
- The acquisition would be the latest in an industry which has seen a good deal of consolidation of late as players deal with slowing volumes - Ameritrade saw 425K client trades per day in August, down 21% Y/Y, and E*Trade's 144K was off 20% (though it's a tough comparison given the massive volatility in August 2015).
- Scottrade had $1.04B in revenue in 2015, according to Wells Fargo's Christopher Harris. Revenue, however, has been flat since 2014. That, along with serious health issues for co-founder and CEO Rodger Riney could be pushing along the decision to sell.
- Previously: Analyst: TD Bank could held fund Ameritrade bid for Scottrade (Oct. 20)
Thu, Oct. 20, 11:59 AM
- According to Rob Sedran and team at CIBC, TD Bank (NYSE:TD) has the necessary regulatory capital to inject about $1.5B into its minority-owned TD Ameritrade (NASDAQ:AMTD) should it pursue a purchase of rival Scottrade.
- Scottrade has reportedly put itself on the block at somewhere in the $4B range, and a report today says TD and AMTD have teamed up to put in a joint bid.
- TD owns 42% of Ameritrade, and Sedran believes the lender would want to maintain that level in the event of a Scottrade purchase.
- It would be "strategically consistent" for TD to be involved in the buy, says Sedran, noting Scottrade's banking assets could be easily absorbed the direct brokerage is a business the lender knows well and with whom it has a strong partner, and in which material synergies could be expected.
Fri, Sep. 30, 11:20 AM
- The big rise in TD Ameritrade (AMTD +2.2%) of late "amply discounts" the most likely accretion scenarios, says Citi's William Katz, but leaves no room for a bad outcome such as E*Trade or a third party winning the bidding for Scottrade. "We are inclined to fade the rally, particularly as rate expectations remain largely muted."
- In addition to rumors about an Ameritrade purchase of Scottrade, there's also chatter about an Ameritrade/E*Trade tie-up. Of the two, Katz thinks a deal with Scottrade is more likely given its smaller size and more manageable revenue "dis-synergies" and cost reductions.
Fri, Sep. 30, 8:33 AM
- TD Ameritrade (NASDAQ:AMTD) had a big move yesterday after Bloomberg reported Scottrade has put itself on the block, with Ameritrade as a possible suitor.
- Don't forget possible interest from Schwab (NYSE:SCHW) and E*Trade (NASDAQ:ETFC), says Wells Fargo, which believes a deal would be accretive by double-digit levels.
- That said, Ameritrade could be the most logical buyer, given that E*Trade just closed on a purchase (OptionsHouse) and Schwab has sought to place less emphasis on trading.
- Wells keeps its Outperform rating on E*Trade and Market Perform ratings on Schwab and Ameritrade.
Thu, Sep. 29, 1:09 PM
- A Bloomberg story last night said Scottrade is working with an adviser on a sale that would value the company in the $4B range.
- Among those with interest is TD Ameritrade (AMTD +5.2%), according to the story. With the industry struggling with sluggish trading volumes, low interest rates, and lower-cost rivals, a purchase would give Ameritrade the opportunity to profit by eliminating redundant back-office systems while bringing in new customers, says Bloomberg's David Ritter.
Wed, Sep. 28, 6:01 PM
- Online brokerage Scottrade Financial Services is working with advisers on a possible sale that could interest rivals including TD Ameritrade (AMTD +0.6%).
- The privately held Scottrade could be valued at $4B in a deal, sources tell Bloomberg.
- Scottrade was among the discount brokerage pioneers, and operates through four different units including the retail brokerage as well as investment advisory and banking services.
Dec. 27, 2012, 7:15 AM
Getco's $1.4B bid for Knight Capital (KCG) gets a key backer with the support of TD Ameritrade (AMTD) - a 7% owner of Knight. Combined with Jefferies' previously announced support and Getco's own shares, this brings to 45% the ratio of Knight's shares in favor of the deal. Blackstone - a 15.6% owner - also looks likely to back the sale.| Dec. 27, 2012, 7:15 AM
Sep. 7, 2011, 3:51 PM
Jul. 25, 2011, 7:48 AM