Source: TD Waterhouse
TD Waterhouse, one of the UK's leading execution-only brokers, has reached an agreement through its parent The Toronto-Dominion Bank (TD) to take full ownership of Internaxx Bank, the leading online private bank for self-directed international investors.TD and its subsidiaries are collectively known as TD Bank Financial Group.
Since 2000, TD has held a stake in Internaxx, which currently has 43 employees and £0.863 billion in customer assets. This stake was increased to 75% in February 2009 and in this latest deal, TD is acquiring the remaining 25% that was previously owned by Luxembourg-based bank BGL BNP Paribas.
The move reinforces the strategic role entrusted to Internaxx by TD Waterhouse in its decision to expand in Europe. During the past ten years Internaxx has offered online investment services to its European and international clients from its base in Luxembourg. Over time, it has become the leading investment platform for international and expatriate clients seeking online and discounted access to the world's financial markets. In addition to this, Internaxx provides the local knowledge and linguistic skills that will be a major asset for TD Waterhouse as it continues to expand its online services further into continental Europe.
Angus Rigby, CEO, TD Waterhouse and Senior Vice President, TD Group comments: "Becoming a full owner of Internaxx brings many benefits to our customers, employees and both businesses as a whole. It allows us to answer the needs of Internaxx's private banking clients by providing real time access to their accounts, sophisticated investment and information tools, and an attractive and transparent commission structure.
"Meanwhile, employees from both operations can enjoy greater opportunities between our offices in the UK and Luxembourg. While overall this deal will help us to further develop the skills needed as we progress with our plans to become a leading online broker in Europe."
Robert Glaesener, CEO, Internaxx Bank continues: "This is a great deal for Internaxx and our clients for two main reasons. First, the solidity of TD Bank Financial Group, which is one of only three NYSE-listed banks to have maintained its 'Aaa' rating from Moody's throughout the global financial crisis, provides the solidity demanded by our international clientele. Second, the expertise of TD Waterhouse in the online brokerage business will give us the means to achieve our long term expansion goals."
This latest deal follows a number of strategic acquisitions made by TD Waterhouse in the UK market over the last year, these include the acquisition of OMX Securities - now TD Waterhouse Corporate Services (Europe) - in August 2009, and the purchase of the UK accounts of E*TRADE announced in January 2010.