Ally Financial acquires TradeKing for $275 million

Confirming LeapRate’s earlier report about TradeKing being for sale, the company announced today the signing of an acquisition agreement with Ally Financial Inc (NYSE:ALLY).

Under the agreement, Ally Financial Inc will acquire an online broker/dealer, a digital portfolio management platform, and educational content and social collaboration channels. Ally is paying $275 million, subject to certain purchase price adjustments, representing approximately $250 million in premium to the acquired net assets.

Subject to certain conditions, such as getting a regulatory approval from the Financial Industry Regulatory Authority (FINRA) and compliance with the Hart-Scott-Rodino Antitrust Improvements Act, the transaction is set to close in the third quarter.

TradeKing’s offering includes of an online broker/dealer for self-directed investors, professionally-managed portfolios through an automated and fully-transparent online process, and a set of educational content and social collaboration channels. In November last year, TradeKing closed the acquisition of MB Trading.

According to today’s report, Tradeking Group has approximately $4.5 billion in client assets, including approximately $1.1 billion of cash and cash investments, 260,000 funded accounts and 20,000 daily average revenue trades (DARTs).

Diane Morais, CEO and president of the Ally Bank subsidiary, says,

“Ally and TradeKing have a shared philosophy in bringing customers and clients an exceptional digitally-oriented experience, with award-winning customer service and competitive products. We look forward to welcoming the TradeKing team to the Ally family as we aim to deliver additional products and services to our combined set of customers under the Ally brand, which is a recognized leader in digital financial services.”

Ally Chief Executive Officer Jeffrey Brown says,

“The addition of wealth management is the next key step in Ally’s digital product evolution and will create a powerful combination of segment-leading direct banking and innovative investment services in a single integrated customer experience. This transaction presents a compelling opportunity for customers and a logical growth opportunity for Ally.”

Don Montanaro, CEO of TradeKing, comments,

“We are thrilled to have found a partner who shares our core philosophy of delivering a great client experience digitally and through multiple channels. This is great news for our clients and our teammates, as we will continue to bring innovation and outstanding value to the marketplace, only now with the power and breadth of services of the Ally brand in our corner. We look forward to being part of this modern digital financial services company.”

For the full announcement about the deal, click here.

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