NEW YORK, Aug. 15 /PRNewswire/ -- In a strategic move to expand its
offering for active traders, TD Waterhouse Group, Inc. (NYSE: TWE; TSE), the
global online financial services firm, today announced that it has signed
definitive agreements to acquire R.J. Thompson Holdings, Inc. ("RJT"), a
privately-held direct access brokerage firm in Omaha, Nebraska.
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
after acquisition due to retention and performance incentives as well as
funding costs and will be accretive thereafter. Subject to receipt of
regulatory approvals and the satisfaction of certain closing conditions, the
transaction is expected to close in the fourth fiscal quarter of 2001.
RJT will continue operating in Omaha, Nebraska as a separate unit serving
the needs of active traders. RJT's customers enjoy access to tools such as:
-- Direct access to market makers and ECNs;
-- Automatic updates of account information for immediate notification of
executions, order modifications, and other essential account
information;
-- Automatic updating of real-time balances, positions and P&L
calculations allowing active investors to immediately see the impact
their trades and the market's activity have on their portfolio;
-- The ability to enter multiple order tickets simultaneously; and
-- Streaming real-time market data and Level II quotes.
"The acquisition of RJT is an excellent opportunity for us to further
expand our presence in the active trader arena, one of the most vibrant
segments of the market," said Steve McDonald, Chief Executive Officer of TD
Waterhouse. "Offering customized services for specific investor groups will
help drive success in our industry and this acquisition leaves TD Waterhouse
well-positioned to capitalize on this developing dynamic."
Richard J. Rzasa, Chief Information Officer of TD Waterhouse added,
"Direct access to market makers and ECNs is a priority for many active
traders. Through the acquisition of RJT, we will build a leading-edge
offering for this segment by expanding on the functionality of RJT's direct
access platform and over time combining it with the robust product, service
and technology offerings TD Waterhouse already has in place."
As part of the agreement, Randy Thompson and Greg Gilgenast of RJT, both
pioneers in the development of online investing technology, will join TD
Waterhouse as Managing Director, Active Trader Division and Senior Vice
President, respectively.
"RJT's trading platform was developed to meet active traders demand for
quick, reliable order execution, dynamically updating account information and
direct access to the markets," said Randy Thompson, CEO of RJT. "Joining the
TD Waterhouse family offers a unique opportunity for us to continue developing
new technology solutions, while leveraging their experience and resources."
RJT has consistently ranked number one in the J.P. Morgan H&Q Quarterly
Brokerage Reports and in June 2001, was one of eight brokerage firms named as
Forbes' Best of the Web.
RJT's technology is slated to be integrated into TD Waterhouse's U.S.
platform in the first half of 2002, providing TD Waterhouse's active customers
with access to many of the features currently available through RJT. Prior to
completion of this integration, TD Waterhouse's customers who would like to
take advantage of RJT's platform are encouraged to open a separate account
with RJT.
About R. J. Thompson
Located in Omaha, Nebraska, R.J. Thompson Securities (RJT.com) is a
nationally-recognized direct access brokerage firm registered in all fifty
states and is a wholly owned subsidiary of R. J. Thompson Holdings, Inc.
RJT.com offers real-time streaming Level I and II quotes, real-time balances,
real-time positions, real-time P&L, real-time order history, one click
trading, Direct Access functionality, smart order routing, automated short
sales feature, electronic trade confirmations, and extended hours trading.
The firm has approximately 13,440 active trader customer accounts and handles
approximately 5,600 trades per day. Member NASD and SIPC. InfoComp
International, Inc., a wholly-owned subsidiary of R. J. Thompson Holdings is a
leader in the development of state-of-the-art software solutions for the
financial services industry, including a full range of integrated software
products that allow independent broker/dealers and clearing firms to offer
enhanced front-end services to their clients.
About TD Waterhouse
TD Waterhouse Group, Inc., (NYSE: TWE; TSE) provides investors with a
broad range of brokerage, mutual fund, banking and other consumer financial
products on an integrated basis. Worldwide, TD Waterhouse currently services
3.1 million active customer accounts in the United States, Canada, the United
Kingdom, Australia, and Hong Kong. The firm also has joint ventures in Japan,
India and Luxembourg to serve investors in those countries. TD Waterhouse can
be found on the Internet at http://www.tdwaterhouse.com and on America Online
at Keyword: TD Waterhouse.
TD Waterhouse's majority owner is TD Bank (NYSE: TD; TSE), which holds
approximately 89% of the outstanding share capital of TD Waterhouse.
Headquartered in Toronto, Canada, with offices around the world, TD Bank
Financial Group offers a full range of financial products and services to
approximately 13 million customers worldwide.
This release contains projections and other forward-looking statements
regarding future events and our future financial performance. These statements
are based on management's current beliefs and expectations. These beliefs and
expectations are based on assumptions that are subject to risks and
uncertainties that may cause actual results to differ materially from these
statements. The forward-looking statements contained in this release speak
only as of the date hereof and we do not undertake any obligation to provide
updates on or corrections of such statements in the future as a result of
subsequent developments or otherwise. The risks and uncertainties that may
cause actual results to differ materially from these statements include, but
are not limited to, (i) changes in general economic conditions and prevailing
interest rates, (ii) market volatility or further sustained decreases in the
market prices of securities generally, (iii) significant increases or
decreases in trading activity by our customers, (iv) customer attrition, (v)
the development and acceptance of new products and services, (vi) system
delays and failures, (vii) increased competition (viii) the failure to close
the transaction with RJT, and (ix) the delay or failure in integrating RJT's
technology as expected. For a discussion of risks and uncertainties that may
cause actual results to differ from those reflected in such forward-looking
statements, please refer to our filings with the Securities and Exchange
Commission, including the information included under the heading "Item 1.
Business-Risk Factors" in our Annual Report on Form 10-K for the fiscal year
ended October 31, 2000.
SOURCE TD Waterhouse Group, Inc.
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Related links:
http://www.tdwaterhouse.com
http://www.RJT.com
CONTACT:
Melissa Gitter, +1-212-806-3522,
MelissaGitter@TDWaterhouse.com, or Melissa Fox, +1-212-908-3101,
MelissaFox@TDWaterhouse.com, both of TD Waterhouse Group
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