Rush Financial Technologies, Inc., dba RushTrade Group (Rush) (OTC BB:RSHF.OB), today announced that it has completed the acquisition of 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 provide a sophisticated front-end trading platform and back-end execution and clearing services to Retail, Institutional and Wholesale clients worldwide. Furthermore, the companies currently have approximately 20,000 customer accounts and over $600 million in customer account assets as of closing of the transaction. RushTrade Securities, Inc.'s (RushTrade) proprietary front-end trading platform has been consistently ranked among the top competitors by Barron's, and has been the recipient of multiple awards by well-recognized rating agencies. Terra Nova became self-clearing in March 2004, and is repeatedly ranked among the leaders in online trading by Barron's and others.
"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 both RushTrade and Terra Nova have assets that complement and enhance one another, benefit our customers and add value to our shareholders," said Mr. D. M. "Rusty" Moore, Jr., Chairman and Chief Executive Officer.
"The RushTrade platform will complement the needs of Terra Nova's diverse client base of institutions, correspondent broker/dealers and active investors. Our ability to support equities, options, futures and FX with RushTrade, as well as other platforms, makes Terra Nova the broker of choice for serious traders," said Mike Nolan, President of Terra Nova Trading, LLC.
"This business combination positions us as one of a few broker/dealers in the world who own and control the entire front-to-back technology. Coupled with our superior customer support, Terra Nova is well positioned to be a leader in this industry going forward," said M. Patricia "Patti" Kane, Chief Operating Officer.
Rush has issued approximately $35,000,000 of convertible, non-cumulative preferred stock and warrants in exchange for the cash raised in connection with the acquisition. The preferred stock will be converted into Rush's common stock as soon as possible. Five-year warrants for an additional $35,000,000 in value have been issued in connection with the offering. The purchase price of the acquisition was $25,000,000. The remainder of the funds, net of offering and acquisition-related expenses, will provide for additional working capital and broker/dealer net capital. The acquisition will be accounted for as a business combination.