Discount brokerage TD Ameritrade is buying rival Scottrade in a deal worth $4 billion.
The move, announced Monday by both companies, will allow TD Ameritrade to quadruple the size of its branch network. As part of the deal, TD Bank, which already owns 42% of TD Ameritrade, will increase its stake in the combined discount broker.
TD Ameritrade was formed in 2006 when Ameritrade purchased TD Waterhouse USA from TD Bank. TD Bank ended up with its current stake in the company as a result of that deal.
Scottrade, founded in 1980 by CEO Rodger Riney, is privately held. Riney, the face of the company, will join the board of TD Ameritrade, but will apparently not have an executive role in the combined company.
