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Toronto-Dominion Bank (TD) to Acquire Headlands Tech Global

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With a goal to further expand its electronic fixed income trading business, The Toronto-Dominion Bank (TD - Free Report) has signed an agreement with Headlands Tech Holdings, LLC to buy Headlands Tech Global Markets, LLC. The deal, expected to close in mid-2021, is subject to regulatory approvals and other closing conditions.

Following this announcement, shares of Toronto-Dominion Bank declined almost 1% on the NYSE.

The financial terms of the transaction, which will have minimal impact on Toronto-Dominion Bank’s capital levels, were not disclosed. TD Securities served as financial advisor to Toronto-Dominion Bank, while Evercore was the financial advisor to Headlands Tech Holdings.

Founded in 2013, Chicago-based Headlands Tech Global’s proprietary software delivers fully automated electronic market-making in municipal and investment grade corporate bonds. The company has offices in Chicago and San Francisco. Following the completion of the deal, the company’s 15 employees, including Co-CEOs Martin Mannion and Matthew Schrager, will be joining TD Securities.

Bob Dorrance, Chairman, CEO and President of TD Securities, said, “"This acquisition further strengthens our electronic bond trading infrastructure and underscores our commitment to delivering data-driven innovation and growing our global platform.”

Co-CEO, Mannion, the Co-CEO of Headlands Tech Global Markets noted “Our team is a strong cultural fit with TD Securities, and we are confident that our proven expertise in electronic trading will complement the firm's existing business, growth ambitions and dedication to exceptional client service.”

Toronto-Dominion Bank is open to strategic acquisitions. The company has robust balance sheet and liquidity position, which are likely to support such moves. In January, it had announced a deal to acquire Wells Fargo’s (WFC - Free Report) Canadian direct equipment finance business for undisclosed amount.

So far this year, shares of Toronto-Dominion Bank have rallied 15.1% on NYSE, outperforming the industry’s growth of 11.8%.



Currently, Toronto-Dominion Bank carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Similar Moves by Other Finance Stocks

KeyCorp (KEY - Free Report) acquired data analytics-driven consultancy firm, AQN Strategies LLC. The acquisition is part of the company’s efforts to employ data-driven approaches, which will help it in expanding its customer reach.

Moody’s (MCO - Free Report) acquired Cortera, one of the leading providers of North American credit data and workflow solutions. The deal, announced in February, was funded with cash in hand, and is not likely to have material impact on the company’s 2021 results.

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