Omaha-based TD Ameritrade is buying competitor Scottrade Financial Services.
The cash and stock transaction, which the boards of directors on each side of the deal have approved, is valued at $4 billion.
“We’ve found in Scottrade a partner with an equally-strong passion and a proven track record for delivering exceptional client experiences,” Tim Hockey, TD Ameritrade president and CEO, said in a news release. “This combination will allow us to leverage our strengths and increase our scale, further accelerate our asset gathering capabilities and introduce our award-winning line-up of trading tools, products and education services to millions of new investors.”
The two-step transaction involves TD purchasing Scottrade Bank for $1.3 billion, and then TD will acquire Scottrade Financial Services for $2.7 billion.
According to TD Ameritrade, over the past year, both companies had an average of 600,000 client trades each day from its combined 10 million funded client accounts.
The two companies have a total cash balance of $149 billion.