Following an aggressive campaign of well-reported wooing from E-Trade Financial Corp., Ameritrade Holding Corp. has now made a match with rival TD Waterhouse. TD Waterhouse, which is owned by Toronto-Dominion Bank, will become part of Ameritrade in an all-stock deal valued by the companies at $2.9 billion.

"This opportunity accelerates our long-term investor strategy with access to branches and advice, while maintaining an industry leading pre-tax margin," said Joe Moglia, CEO of Ameritrade and future CEO of TD Ameritrade. "We expect that it will create significant value for shareholders by generating substantial cost synergies and deliver a more diverse revenue mix by shifting to an asset-gathering model."

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.