Ameritrade Base Case

By John McCormick  |  Posted 2003-11-01 Email Print this article Print

The online brokerage had to buy rival Datek in order to survive. But growth can kill, too, unless you merge systems carefully.

Ameritrade Base Case

Headquarters: 4211 S. 102nd St., Omaha, NE 68127

Phone: (800) 237-8692

Business: Online financial-services company

Chief Information Officer: Asiff Hirji

Financials: Revenue, $713 million; net income, $137 million; net profit margin, 19% of revenue. Figures are for fiscal year ended Sept. 26, 2003.

Challenge: Improve stock-trading features and functions while incorporating the operations of an acqusition, Datek, into its own systems.

Baseline Goals:

  • Cut $173 million in annual costs, about half of which could come from integrating Datek.
  • Support 450,000 trades per day. Average number of trades per day in fourth quarter ended Sept. 26, 2003, was 158,000.
  • Retain more than 90% of customers from both Ameritrade and Datek.

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