The transaction, which is subject to regulatory approval from the Financial Industry Regulatory Authority (FINRA) and compliance with the Hart-Scott-Rodino Antitrust Improvements Act, as well as satisfaction of other customary closing conditions, is expected to close in the third quarter.
The deal, which includes an online broker/dealer, a digital portfolio management platform, and educational content and social collaboration channels, aims to expands Ally’s digital financial services offering to include wealth management. TradeKing’s management team and workforce of approximately 180 team members will join Ally following the closing of the transaction.
Led by Don Montanaro, CEO, TradeKing provides an online broker/dealer for self-directed investors, professionally-managed portfolios through an automated and transparent online process, and a set of educational content and social collaboration channels. The platform has approximately $4.5 billion in client assets, including approximately $1.1 billion of cash and cash investments, 260,000 funded accounts and 20,000 daily average revenue trades (DARTs).
TradeKing, which has a significant presence in Charlotte, N.C., was backed by Velocity Capital, Battery Ventures, OCA Ventures and the Quick Family of Quick & Reilly.