OMAHA, Neb. and BROOKFIELD, Wis. — TD AMERITRADE Holding Corp. and Fiserv Inc. announced today in a release that TD AMERITRADE has completed its purchase of Fiserv's Investment Support Services business for approximately $225 million in cash plus the amount of acquired regulatory capital. Additionally, based upon achievement of certain revenue targets over the next 12 months, there is an earn-out of up to $100 million payable to Fiserv.
The acquisition adds approximately $25 billion in client assets to TD AMERITRADE, including $15 billion held in more than 75,000 accounts managed by approximately 500 independent Registered Investment Advisors and $10 billion held in more than 2,000 plans administered by 80 independent third-party administrators.
"This deal reinforces our client segmentation strategy and signifies our commitment to grow and invest in the RIA community," said Tom Bradley, president, TD AMERITRADE Institutional.
The purchased business adds scale to TD AMERITRADE Institutional, the third largest provider of comprehensive brokerage and custody services in one of the fastest growing segments of financial services. The institutional business now holds over $100 billion in assets under management with over 4,500 RIAs and their clients.
With the inclusion of Fiserv Trust Company, TD AMERITRADE Institutional also adds significant growth to its 401(k) custody business. Skip Schweiss, executive vice president of Fiserv ISS, will direct TD AMERITRADE Institutional's efforts at the newly acquired Fiserv Trust Co., reporting to Tom Bradley.
"We believe this deal will enhance services for clients," said Jeffery Yabuki, president and chief executive officer of Fiserv. "At the same time, we will continue to expand our technology leadership position across the financial services industry."
Fiserv also expects to close the previously announced transaction with Robert Beriault Holdings Inc. by the end of the second quarter of 2008.
