TD Ameritrade Holding Corp. yesterday announced that it completed its acquisition of Fiserv's investment support services business for roughly $225 million cash. The deal brings TD Ameritrade about $25 billion in additional client assets, including $15 billion sitting in more than 75,000 accounts overseen by about 500 registered investment advisors, as well as $10 billion in more than 2,000 plans administered by 80 independent third-party administrators.
All told, the deal makes TD Ameritrade Institutional the third largest provider of brokerage and custody services with more than $100 billion in assets under management with more than 4,500 RIAs. It also boosts its 401(k) custody business.
The deal between Omaha-based TD Ameritrade and the support services business at Brookfield, Wisc.-based Fiserv was announced seven months ago. In addition to the stated cash price, Fiserv will get up to $100 million if the acquired business hits certain revenue targets within 12 months.