Online brokerage TD Waterhouse has acquired privately-held direct access firm R J Thomson (RJT), in a move intended to boost its appeal to active day traders.
Financial terms of the all cash deal were not disclosed. TD Waterhouse expects the acquisition could cost up to four cents a share in the first year due to retention and performance incentives as well as funding costs. The transaction is expected to close in the final quarter.
RJT offers investors dynamically updated accounts, direct access to market makers and ECNs, streaming real-time market data and Level II quotes, plus the ability to enter multiple order tickets simultaneously.
The company's technology is slated to be integrated into TD Waterhouse's US platform in the first half of 2002. In the interim, active investors at TD Waterhouse will be advised to open a separate account with RJT, which will continue operating as an independent unit from its base in Omaha, Nebraska.
Richard Rzasa, chief information officer of TD Waterhouse, says the firm will expand on the functionality of RJT's direct access platform and over time combine it with the product, service and technology offerings TD Waterhouse already has in place.
As part of the agreement, Randy Thompson and Greg Gilgenast of RJT will join TD Waterhouse as managing director, Active Trader Division and senior vice president, respectively.