In December 2000, MCP made a preferred stock investment in Datek Online Holdings, a leading provider of financial technology products and services to the institutional and retail trading communities. The investment was made as part of a larger recapitalization by an investor group that included Bain Capital, TA Associates, and Silver Lake Partners. Datek's primary businesses are: Datek Online — the leading independent online broker; iClearing—a securities clearing operation; and Watcher Technologies—a provider of state-of-the-art trading systems for the professional trading industry. In addition, as part of the recapitalization, The Island ECN, a former majority-owned Datek subsidiary, was spun out directly to MCP and the investor group. The Island ECN is a leading alternative trading system to NASDAQ and the largest electronic communications network as measured by execution volume. Proceeds from the investment were used to buy-out founders of Datek and to finance the company's rapid growth.
In September 2002, Ameritrade (NASDAQ: AMTD) acquired Datek.
Date of Investment: December 2000
Date of Sale: September 2002
MCP Contact: Peter Laino
- 4/08/02 - Ameritrade and Datek Announce Landmark Merger; Combination Establishes a New Leader in Online Equity Trades
- 4/16/02 - Datek Reports 78,274 Average Daily Trades for March 2002
- 4/22/02 - Highlights of Datek Online Holdings Corp. Earnings Results
- 3/05/02 - Datek Slashes Commissions for Trading Options
- 3/07/02 - Datek Online Reports 100,037 Average Daily Trades For April 2001
- 12/1/00 - Leading Investor Group To Acquire Majority Stake In Datek Online Holdings
- 12/1/00 - Leading Investor Group To Acquire Majority Interest In Island ECN