Rush Financial Technologies, Inc., dba RushTrade Group (Rush) (OTC BB:RSHF.OB) today announced that it has entered into an agreement with TAL Financial Services, LLC (TFS) to acquire 100% of the outstanding membership interests of Terra Nova Trading, LLC (Terra Nova), Market Wise Securities, LLC and Market Wise Stock Trading School, LLC.
The combined companies will have approximately 20,000 customer accounts and over $500 million in customer account assets. Mr. D. M. "Rusty" Moore, Jr., Chairman and Chief Executive Officer of Rush said, "We are very excited about the combination of Terra Nova's "back-end" technology with RushTrade's proprietary "front-end" platform. Terra Nova has built a solid reputation in the direct market access and online trading industry and, combined with RushTrade, will complement and enhance our product offering."
With Terra Nova's longstanding relationship with Townsend Analytics, Terra Nova will continue to be a leader in direct access trading, offering RealTick, Townsend's premier trading platform. Terra Nova became self-clearing in March 2004, and is consistently ranked among the leaders in online trading by Barron's and others.
"As the founder of Terra Nova, I was proud to see it grow to be a leader in online trading and an innovator in providing services to its institutional, wholesale and direct clients. Together, Rush and Terra Nova will be well positioned to serve the growing needs of the institutional, professional and online investor," said Jerry Putnam, founder of Terra Nova and current Co-President of the NYSE Group. "Additionally, I'd like to thank the exceptional team of employees at Terra Nova for their commitment and for the many contributions they have made to the company's success."
"Terra Nova has been an important customer of Townsend Analytics, Ltd. for many years," said Stuart and MarrGwen Townsend, the founders of Townsend Analytics, Ltd. "We will continue to work together with Rush and Terra Nova to provide their customers with the best possible trading solutions."
The closing of the transaction is conditioned upon receiving all necessary consents of third parties and governmental or regulatory bodies, including the NASD. Rush has raised the funds in escrow necessary to complete the transaction and to provide additional regulatory and working capital.
Arabella Securities of Austin, Texas was engaged to render financial advisory services to Rush in connection to the transaction. Sandler O'Neill + Partners, L.P. provided financial advice to TAL Financial Services, LLC.