Think or Swim

K

kinggyppo

Think or Swim being bought by Ameritrade, good for Think or Swim shareholders. Where can someone get the nitty grity of the details. I am trying to figure out if you need to be a holder of record to get the cash on the shares.

7:30AM thinkorswim to be acquired by AMTD in a cash and stock deal valued at approximately $606 mln (SWIM) 5.65 : Co announced that they have entered into a definitive agreement for AMTD to acquire SWIM in a cash and stock deal valued at approximately $606 mln as of Jan. 7, 2009 This acquisition underscores AMTD's position as a successful industry consolidator. thinkorswim is among the fastest growing online brokerage firms and has unique trading and investor education capabilities, particularly for the fastest growing segment of the industry - options trading. AMTD is the current industry leader in the number of equity trades placed each day, and thinkorswim currently leads the industry in retail options trades placed each day. AMTD will acquire thinkorswim for approximately $606 mln, which includes $225 mln to be paid in cash and the issuance of approximately 28 mln shares of AMTD common stock to thinkorswim shareholders. At closing, each share of thinkorswim will be exchanged for $3.34 in cash and 0.3980 of a AMTD share. (Briefing.com note: Based on last night's closing price, the deal values SWIM at ~$8.70 per share)
 
Terms of the Transaction

The principal terms of the transaction include the following:


TD AMERITRADE will acquire thinkorswim for approximately $606 million, which includes $225 million to be paid in cash and the issuance of approximately 28 million shares of TD AMERITRADE common stock to thinkorswim shareholders.(2) At closing, each share of thinkorswim will be exchanged for $3.34 in cash and 0.3980 of a TD AMERITRADE share. This represents a 46 percent premium based on the 30-day average exchange ratio, and a 29 percent premium based on the 90-day average exchange ratio.
TD AMERITRADE intends to initiate a new stock buyback program that will equal the approximately 28 million shares issued in the acquisition.
TD AMERITRADE expects the transaction to be accretive by approximately three to seven percent of fiscal 2010 GAAP earnings and 10 to 15 percent 12 months following the completed integration, which includes the benefit to be received from the intended buyback program.
TD AMERITRADE will retain key members of thinkorswim management. Mr. Barba will have an active role in the transition, and thinkorswim founders Tom Sosnoff and Scott Sheridan will join TD AMERITRADE after the transaction closes.
The transaction is subject to approval by thinkorswim stockholders, regulatory approvals and customary closing conditions. TD AMERITRADE and thinkorswim expect the deal to close within the next six months.

Merrill Lynch & Co. is serving as financial advisor to TD AMERITRADE. Paragon Capital Partners LLC is serving as financial advisor to thinkorswim. UBS Investment Bank provided an opinion to the thinkorswim board of directors with respect to this transaction.
 
Unfortunately this will likely put an end to the great service and platform. And the free monkey when you open an account.
 
This is unquestionably bad news for those Think or Swim customers that have become accustomed to great service from a small company that would work directly with the client to work out whatever you needed. You have to assume they will become the large corporate run non boutique firm of TD.

Anyone know if there is somewhere else we can go? We all know about IB – great commissions for options and great range of products, but terrible commissions for futures, useless charts, and poor service. Is there any company out there like Think or Swim? Maybe it was too much to hope that a small, well run company could survive the generic large corporate takeover.
 
I moved from OXPS to ToS last summer because I hated the web-only OXPS interface for trading, and their Java-based xTend was horrible and useless for active trading. Otherwise the firm was okay and I was quite happy there.

Depending on what happens post-merger, I may go back to OXPS or look elsewhere. I really REALLY hope they don't kill ToS -- it was/is a fantastic company, great platform, and wonderful trading experience.
 
A bit disappointed but I guess you can't blame the Tom's for wanting to cash out. I do a fair amount of volume in spreads and may set up a demo account at IB. Will save a few dollars there, but would rather stay w/TOS and keep their platform. Will see how it goes.
 
This is a sad day. The TOS platform rocks. I've enjoyed having an IRA account with them, but I have to believe TD Ameritrade is going to kill many of the benefits of being with ThinkorSwim. I imagine comissions will go up, service will go down, and the TOS platform will cease to be cutting edge.
 
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