Inside the TradeStation-Monex Group Merger: Acquiring a new Growth Strategy
TradeStation Group had achieved significant success in a highly competitive market. Its top-ranked trading platform was ranked first by Barron’s magazine, beating out big names such as Charles Schwab, E-Trade, and Fidelity. However, its leaders knew that the company needed the resources of a global firm to continue its trajectory of success. Once TradeStation’s leaders sought a partner for its potential merger, it teamed up with Bilzin Sumberg to finish the deal.
Experienced Counsel and Strategic Services
As TradeStation’s long-term outside general counsel, Bilzin Sumberg had deep insight into its corporate strategy and business needs. Alan Axelrod, chair of the Corporate practice at Bilzin Sumberg, formed a team of seasoned M&A and securities pros, including Serge Pavluk and David Schubauer. The group joined with firm associates to evaluate bids and participate in the negotiations.
• The Bilzin Sumberg team structured the acquisition as a tender offer followed by a short-form merger, instead of a traditional one-step merger, which was crucial to achieving TradeStation Group’s goals since it allowed the deal to close more quickly and provided deal certainty. Tender offers generally can be completed up to three to four times faster than a traditional merger. The Bilzin Sumberg team provided the following services:
• Negotiating deals with multiple bidders and running different versions of the merger agreement simultaneously
• Structuring and documenting the winning bid with Monex Group
• Preparing SEC, stock exchange, anti-trust and other regulatory filings
• Coordinating the release of public information
• Closing the deal with less than two months from signing to closing
Monex Group, Inc., a Japanese online brokerage, sealed the deal with a $402 million cash tender offer in June 2011. The company’s acquisition of TradeStation gave Monex Group, Inc., entré into the profitable U.S. market, as well as an opportunity to leverage its technology, and customer and revenue base to fuel global growth. Meanwhile, TradeStation’s sale provided its investors with significant premium.
Meet Our Client
“Bilzin Sumberg has been TradeStation’s outside general counsel for over 15 years. With Alan Axelrod leading your corporate team, you know you will get the correct analysis and answers, the right advice, and first-rate execution of the complicated and time-sensitive services required to negotiate, sign and close virtually any kind of complex transaction. There is a reason that my executive colleagues and I have consistently turned to Alan for so many years at the most crucial times in our corporate history.” - Marc Stone, General Counsel, Vice President of Corporate Development, TradeStation Group, Inc.
Meet Our Team
Alan Axelrod, Corporate & Tax
Serge Pavluk, Corporate & Tax
David Schubauer, Corporate & Tax
Want to learn more?
Read TradeStation’s press release on the acquisition.
Peruse the South Florida Business Journal’s coverage of the deal.
Visit the TradeStation and Monex Group websites.
DBR Dealmaker of the Year 2011