Ameritrade to acquire JB Oxford accounts

Ameritrade to acquire JB Oxford accounts

Internet broker Ameritrade has signed a definitive agreement to purchase the online retail accounts of US brokerage JB Oxford & Company for a maximum of $26 million.

JB Oxford has approximately 50,000 client accounts of which approximately 27,000 are worth $2000 or more.

Ameritrade says the purchase price will not exceed $26 million and it expects that the acquisition will be immediately accretive to its earnings. The transaction is expected to close this summer.

As part of the transaction, private investment firm Third Capital Partners will convert its holdings of convertible notes of JB Oxford - with an aggregate principal amount of approximately $5.4 million - into approximately two million shares and will vote these shares in favour of the transaction.

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