Please ensure Javascript is enabled for purposes of website accessibility

Texas Stock Exchange wins approval, set to launch in 2026

Summary

The Texas Stock Exchange has crossed its latest hurdle toward becoming a direct competitor to the dominance of the New York Stock Exchange and the Nasdaq.

The Sept. 30 announcement that the U.S. Securities and Exchange Commission had approved the Dallas-based startup to operate as a national exchange was met with celebration by Texas lawmakers, including Gov. Greg Abbott, who declared “Texas is swiftly becoming America’s financial hub.”

The hype around the Texas Stock Exchange, or TXSE (pronounced Tex-ee), has been building since the June 2024 announcement that the exchange intended to launch with $120 million in backing from large investment firms like BlackRock and Citadel Securities, making it one of the most well-funded attempts at a new national exchange in decades.

TXSE officials say the strength of the Texas economy made the move possible, noting the many companies that have come to the state, drawn by favorable regulatory and taxation policies.

Texas is home to the headquarters of the second most Fortune 500 companies in the country, leading New York and closely trailing California.

“Texas is a major player in the U.S. regardless of the exchange landscape, but it ultimately makes sense as the 7th largest economy in the world,” Global Managing Director of Listings Nicole Chambers told a gathering of Dallas business leaders in September, adding that 45 countries smaller than Texas have their own stock exchanges.

“Texas has really become a leader in where you can do business,” Chambers said at the panel discussion at the University of Texas Austin campus. “That is why there is the Texas stock exchange. We couldn’t do this in Oregon or in Nebraska.”

When TXSE launches — that’s expected to happen next fall — it won’t even be the only stock exchange hosted in Dallas. Following the announcement of TXSE’s intention to seek , the New York Stock Exchange in February announced it would reincorporate its Chicago electronic exchange and move it to Dallas, branding it NYSE Texas.

Bill Bailey, managing director of market intelligence at TXSE, said he sees that decision as a reaction to TXSE’s creation, also noting Nasdaq’s March announcement that it would open a regional headquarters in Dallas.

The moves promise to test whether Dallas’ recent growth into a hub for financial services firms is significant enough to justify the city’s new nickname: “Y’all Street.”

Can a startup stock exchange lure companies to join?

Stock exchanges are private institutions where stocks, bonds and other securities are traded, connecting supply and demand “like any other market,” University of Texas at Arlington associate professor of finance Sriram Villupuram said.

The bell ringings on the floor of the New York Stock Exchange and Nasdaq to signal the start of the day’s trading stand out in the minds of the public, but those events are largely for public relations as the two exchanges compete to convince companies to list themselves on their separate exchanges.

Since the of the American Stock Exchange by the NYSE in 2008, the NYSE and Nasdaq have been the two dominant exchanges in the U.S., effectively creating a duopoly, Villupuram said.

Regional exchanges outside of New York, like the Boston Stock Exchange, the Philadelphia Stock Exchange and Chicago Stock Exchange have been swallowed up by the parent companies of the NYSE and Nasdaq, while other exchanges shut down.

Attempts to create a third, dominant national exchange have largely floundered, failing to attract a significant number of companies that want to list on their exchange.

TXSE leadership says this time will be different.

The exchange will be entirely digital but have a physical presence in Dallas, Bailey said. TXSE also intends to hold bell ringing ceremonies for its companies and incorporate much of the pomp and circumstance of its two rival exchanges with its own Texas flair, he added.

With the $120 million in backing from investors like BlackRock and Citadel Securities, Bailey said the digital exchange will be state-of-the-art and have fewer requirements for the makeup of company boards of directors than other exchanges. TXSE also hopes to capitalize on discontent over new rules and rising fees and share price benchmarks at Nasdaq and NYSE.

Much of TXSE’s success will depend on the patience of its investors, Villupuram said. It will take time to convince companies to list themselves on the exchange, but each company that does will build momentum. The speed at which TXSE is able to lure its first 50 to 100 companies to the exchange will be crucial, Villupuram added.

“It gives those that are thinking about listing an idea about what it takes to get on the exchange, and it could snowball from there,” Villupuram said.

TXSE officials say the exchange’s success will also hinge on the health of the Texas economy. If the economy continues to grow, Texas will continue to attract large companies and financial firms, which TXSE officials can try to recruit into the new exchange.

Stock transactions are now largely conducted digitally rather than on a trading floor, but a physical presence near major companies is still crucial for a stock exchange, Villupuram said.

“With stocks, the demand, the trading has become automated, electronic, whatever you want to call it, but the supply, the courting of companies to come get listed with us, that is still very much human to human,” Villupuram said.

“The landscape is changing”

Historically, Dallas was a trading hub due to its central location in the Sun Belt, making it Texas’ primary location for the communications, transportation and finance industries as the state modernized. That has continued as Texas-based corporations grew and Dallas-Fort Worth International Airport became a national travel hub, said Ray Perryman, president of the Waco-based economic research company The Perryman Group.

“Dallas is the natural location for a financial center to emerge in this region,” Perryman wrote in an email.

Top investment banks such as JPMorgan Chase and Goldman Sachs now have tens of thousands of employees in the region and are continuing to grow. Goldman Sachs is in the midst of building a $500 million tower in downtown Dallas that will host more than 5,000 employees, which will make it the bank’s largest hub outside of New York, according to the company. Charles Schwab moved its headquarters from California to Dallas in 2020.

New York has seen just a 16% growth in employment in the investment and securities sector over the last 20 years, while Texas has experienced 111% , Perryman said.

The state’s lower cost of living compared to the northeast also makes it appealing to employees like Sasha Stratton, head of risk for Selby Jennings in Dallas and the South. The company assists with recruitment for financial services companies across the country. Stratton moved to Dallas from her home state of New York five years ago, seeking the opportunity to purchase a home and live a higher quality of life for less money.

“(Firms) are prioritizing hiring in Dallas over hiring in New York in a lot of instances, which I think is a pretty unique shift,” Stratton said. “That’s driven by the availability of talent, the cost of operations, the availability of real estate and with the Texas Stock Exchange and other exchanges following suit, realizing it’s not a compromise to be building out in Dallas, it’s actually a smart, strategic decision to take advantage of how booming the economy is.”

The shift in economic activity to the south paired with the deep pockets of TXSE’s funders suggests the exchange could be a formidable competitor to the NYSE and Nasdaq, Perryman said.

TXSE’s launch coupled with the expansion of NYSE and Nasdaq to the area will make it easier for growing Texas companies to access capital, allowing for more expansion and hiring, Perryman added, creating a feedback loop that benefits both the exchanges and the Texas economy as a whole.

“New York will likely remain the primary center of equity markets for the time being, but the landscape is changing,” Perryman said.

LMI CEO transitions to chairman

SUMMARY:

  • to retire and become board chair
  • Josh Wilson will be his successor
  • LMI reports 74% growth under Wagoner’s leadership

Doug Wagoner, who transitioned LMI to a for-profit government contracting and consulting firm with private equity backing, plans to retire as CEO at the end of the year and will transition to chairman of the Tysons-base company’s board.

LMI’s president of markets, growth and technology, Josh Wilson, will succeed Wagoner as CEO on Jan. 1, according to an Oct. 2 company announcement. A former officer who served two tours in Iraq working on infrastructure reconstruction, Wilson joined LMI in 2014 as a program manager. He later became executive vice president of service lines and technology. During his LMI tenure, Wilson has managed the company’s customer portfolio, growth strategy and research and development.

“I know Josh will lead LMI’s next chapter with clarity, purpose, and vision, and I’m glad I’ll continue to have a ringside seat and be able to collaborate with this fantastic team,” Wagoner said in the announcement.

Chartered under the Kennedy administration in 1961, LMI was originally formed to support logistics management for the . Previously a sector president at Reston-based company Science Applications International Corp. (SAIC), Wagoner joined LMI as its president and CEO in 2020, and he oversaw the 2022 sale of LMI’s for-profit subsidiary to investment firms Declaration Partners, Capitol Meridian Partners and 22 C Capital. The for-profit subsidiary retained the LMI name and the remaining nonprofit entity was rebranded as NobleReach Foundation.

Wagoner went on to lead the new LMI through strategic deals, including the of Colorado-based space tech firm Synaptech in 2022.

In 2020, LMI’s revenue was $397 million, according to news reports. According to the Oct. 2 release, under Wagoner’s leadership, LMI has seen a 74% increase in revenue over the last five years and 40% workforce growth.

“Doug has guided LMI through an important period of and change, strengthening the company and positioning it to make even greater impact,” Adam Palmer, a LMI board member and founding partner at Capitol Meridian Partners, said in a statement. “The board looks forward to his continued leadership as chairman. With Josh stepping in as CEO, LMI is well-positioned to build on its growth with a leader who knows the company’s strengths and brings both vision and a deep understanding of our customers’ needs.”

Wagoner and Wilson will work together through the remainder of the year. Moving forward, LMI plans to focus on accelerating innovation for federal missions, advancing its portfolio of commercial-grade technology platforms and building relationships across defense, civilian and space markets.

General Dynamics unit wins $1.25B Army contract

General Dynamics Information Technology, a business unit of Reston-based aerospace and , announced last week it was awarded a $1.25 billion task order to modernize IT infrastructure to support the in Europe and Africa.

Through the task order, -based plans to deliver enterprise IT, communications and mission command support services to the Army’s Europe and Africa headquarters, subordinate organizations, NATO and other partners.

In addition to modernizing the command’s network infrastructure, GDIT will also provide cybersecurity services and leverage advanced technologies, such as , machine learning, cloud computing and data analytics, to help the U.S. and its allied systems work together seamlessly and support faster decision-making.

“A modern, secure and resilient IT network is critical to U.S. Army Europe and Africa’s deterrence and readiness posture,” Brian Sheridan, GDIT’s senior vice president for , said in a statement. “We look forward to continuing to deliver a modern digital backbone that will enable our soldiers and commanders to stay connected, coordinate seamlessly with mission partners and act decisively on the battlefield.”

The Enterprise Mission Information Technology Services 2 task order, awarded in September, includes a five-month base period and seven option years in which the contract could be renewed. In September, GDIT announced it had won a $1.5 billion contract to modernize the U.S. Strategic Command’s enterprise IT systems.

General Dynamics has approximately 117,000 employees worldwide and reported $47.7 billion in revenue for 2024. It ranked No. 96 on the 2025 Fortune 1000. GDIT reported $8.75 billion in revenue in fiscal 2024 and has about 30,000 employees.

Fruit Growers Association to close after 80 years

SUMMARY:

  • dissolving after nearly 80 years
  • Membership fell from hundreds to about 20 amid industry decline
  • Oversupply, low prices, rising costs and weak demand hurt growers
  • This fall will be final harvest for association’s migrant labor camp

After nearly 80 years of playing an integral role in and ‘s , the Frederick County Fruit Growers Association — best known for housing the seasonal workforce that harvested apples for the region’s fruit growers — is preparing to close down.

In March, the agricultural ‘s remaining members voted to dissolve the association, which was founded in 1945 to support the area’s orchardists. This fall harvest will be the last for the association’s Fairmont Avenue migrant labor camp, marking the end of an era.

“Back in the day, there would have been at least a couple hundred members,” recalls longtime fruit grower Diane Kearns, a former president of the association. At the start of this year, however, she reported that membership had dwindled to about 20.

Members cited fiduciary duty, shrinking orchard acreage, declining membership and challenges facing the apple industry as factors that led to the vote to dissolve the organization.

Kearns cited “a perfect storm of bad things” making the apple industry unsustainable for many growers, including changing consumer habits and processors stating that there is softer demand for products that use apples, such as applesauce and pie filling. Other hurdles included an oversupply of apples being grown, competition from a more global economy, increased expenses fighting regional fungal diseases and rising labor costs. Kearns said last year, “you couldn’t even sell all of your apples.”

“So, the bottom line is, too much fruit, terrible, terrible prices,” she said.

Association member Scott Johnson, a trustee involved in the dissolution, said one of the only ways to make a living in the industry today is a direct-to-consumer model. He said small and midrange orchards are vanishing throughout the country, with only the large orchards surviving “simply because the economies of scale work out for them.”

As the county’s apple acreage fell, so did bed needs at the co-op camp. Despite having a capacity for 2,000 harvesters, the camp is hosting little more than 100 this year, most of whom are from Jamaica or Mexico.

“We had a tremendous amount of assets and infrastructure that we just couldn’t support any longer,” Johnson said.

The workers are expected to depart by the end of December. Johnson said the association remains in dissolution until all of its assets, including about 11.4 acres in the city of Winchester and 27.2 acres in Frederick County, are sold. A petition outlining the plan was filed in the Winchester Circuit Court this summer.

Without the association’s migrant camp, Johnson notes it will be a challenge for most fruit growers to be able to house workers, although he believes those determined to stay in the business will find solutions, potentially taking advantage of grant programs.

“I will say that farming is something that most do, not because it is always lucrative, but because it’s something you’re passionate about,” Johnson said. “And anybody who is really passionate about the industry that they’re in is going to find a way to make it work.”

What’s lost, Johnson adds, is more than the camp. Without the co-op, growers lose a built-in forum for swapping ideas and coming together in one room.

“In my opinion, the biggest detriment that this will cause to the industry is just that camaraderie and community piece will be missing,” Johnson said.

Kearns described the cooperative’s dissolution as “really unfortunate,” as it had played a significant part of her life. While she wasn’t surprised by it ending, due to the state of the industry, she said she was “sorry to see it happen.” Nevertheless, she hopes area fruit growers can continue to find ways to survive.

“ also has, in the past, found ways to hang on or reinvent itself,” she said. “So, I’m sort of hopeful that we can do that.”

Lack of jobs data due to government shutdown muddies the outlook for hiring and the economy

Summary

  • delays release of September
  • First missed report since 2013 shutdown
  • Economists turn to , Goldman Sachs and private data
  • Hiring slows but layoffs remain historically low

WASHINGTON (AP) — From Wall Street trading floors to the to economists sipping coffee in their home offices, the first Friday morning of the month typically brings a quiet hush around 8:30 a.m. eastern as everyone awaits the ‘s crucial monthly jobs report.

But with the government shut down, no information was released Friday about hiring in September.

It’s the first time since a government shutdown in 2013 that the jobs report has been delayed. During the 2018-2019 partial government closure, the Labor Department was one of several agencies that remained open because Congress had agreed to fund them. September’s jobs figures will be released eventually, once the shutdown ends.

The interruption in the data has occurred at a particularly uncertain time, when policymakers at the Federal Reserve and Wall Street investors would need more data on the economy, rather than less. Hiring has ground nearly to a halt, threatening to drag down the broader economy. Yet at the same time, consumers — particularly higher-income earners — are still spending and some businesses are ramping up investments in data centers developing models. Whether that is enough to revive hiring remains to be seen.

For now, economists are turning to alternative measures of the job market provided by nonprofits and private-sector companies. Those measures mostly show a job market with little hiring, but not many layoffs, either. Those who have jobs appear to be mostly secure, while those looking for work are having a tougher time.

Payroll processor ADP, for example, said Wednesday that its estimate showed the economy had lost a surprising 32,000 private-sector jobs last month. Companies in the construction, manufacturing, and financial services industries all cut jobs, ADP found. Restaurants and hotels, and such as accounting and engineering, also shed workers.

Businesses in , private education, and information technology were the only sectors to add workers, ADP said.

“We’ve seen a significant decline in hiring momentum throughout the year,” said Nela Richardson, ADP’s chief economist. “This is consistent with a low hire — even a no-hire — and low fire economy.”

The shutdown has also meant the government isn’t releasing the weekly count of how many Americans have filed for benefits, a proxy for layoffs, which is published each Thursday.

But Goldman Sachs used data provided by most states to produce their own estimates of unemployment claims. In a report late Thursday, they calculated that weekly claims ticked up to 224,000, up from 218,000 the previous week. Those are historically low figures, which suggest companies are still holding onto most of their workers.

Nvidia and Fujitsu partner on AI infrastructure in Japan

Summary

TOKYO (AP) — U.S. technology company Nvidia and Fujitsu, a Japanese telecommunications and computer maker, agreed Friday to work together on to deliver smart robots and a variety of other innovations using Nvidia’s computer chips.

“The AI industrial revolution has already begun. Building the infrastructure to power it is essential in Japan and around the world,” Nvidia Chief Executive said, hugging his Fujitsu counterpart on stage.

“Japan can lead the world in AI and robotics,” Huang told reporters at a Tokyo hotel.

The companies will work together on building what they called “an AI infrastructure,” or the system on which the various futuristic AI uses will be based, including health care, manufacturing, the environment, next-generation computing and customer services. The hope is to establish that AI infrastructure for Japan by 2030.

It initially will be tailored for the Japanese market, leveraging Fujitsu’s decades-long experience here, but may later expand globally, and will utilize Nvidia’s GPUs, or graphics processing units, which are essential for AI, according to both sides.

The two executives did not outline specific projects or give a monetary figure for planned investments. But exploring a collaboration in AI for robots with Yaskawa Electric Corp., a Japanese machinery and robot maker, was noted as a possible example. AI will be constantly evolving and learning, they said.

Fujitsu and Nvidia have been working together on AI, speeding up manufacturing with digital twins and robotics to tackle aging Japan’s labor shortages.

Tokita said the companies were taking a “humancentric” approach aimed at keeping Japan competitive.

“Through our collaboration with Nvidia, we aim to create new, unprecedented technologies and contribute to solving even more serious social issues,” said Tokita.

Hopes fade for quick end to shutdown as Trump readies layoffs and cuts

Summary

  • Shutdown enters third day with no progress in Congress
  • Democrats demand ACA tax credit extensions in negotiations
  • Trump threatens federal layoffs and infrastructure cuts
  • 750,000 face furloughs, $400M in lost wages

WASHINGTON (AP) — Hopes for a quick end to the  were fading Friday as Republicans and Democrats dug in for a prolonged fight and President Donald Trump readied plans to unleash layoffs and cuts across the federal government.

Senators were headed back to the Capitol for another vote on government funding on the third day of the shutdown, but there has been no sign of any real progress toward ending their standoff. Democrats are demanding that Congress extend benefits, while Republicans are trying to wear them down with day after day of voting on a House-passed bill that would reopen the government temporarily, mostly at current spending levels.

“I don’t know how many times you’re going to give them a chance to vote no,” Senate Majority Leader John Thune said at a news conference Friday. He added that he would give Democratic senators the weekend to think it over.

Although Republicans control the White House and both chambers of Congress, the Senate’s filibuster rules make it necessary for the government funding legislation to gain support from at least 60 of the 100 senators. That’s given Democrats a rare opportunity to use their 47 Senate seats to hold out in exchange for policy concessions. The party has chosen to rally on the issue of health care, believing it could be key to their path back to power in Washington.

Their primary demand is that Congress extend tax credits that were boosted during the COVID-19 pandemic for health care plans offered under the Affordable Care Act marketplace.

Standing on the steps of the U.S. Capitol on Thursday, House Democratic leader said, “Understand this, over the last few days and over the next few days, what you’re going to see is more than 20 million Americans experience dramatically increased health care premiums, co-pays and deductibles because of the Republican unwillingness to extend the Affordable Care Act tax credits.”

The shutdown gamble

Democrats are running the high-risk strategy of effectively voting for a government shutdown to make their stand. Trump has vowed to make it as painful as possible for them.

The Republican president has called the government funding lapse an “unprecedented opportunity” to make vast cuts to federal agencies and potentially lay off federal workers, rather than the typical practice of furloughing them. White House budget director Russ Vought has already announced that he is withholding billions of dollars for infrastructure projects in states with Democratic senators.

On Friday morning, Vought said he would withhold another $2.1 billion for Chicago infrastructure projects to extend its train system to the city’s South Side.

Jeffries has displayed no signs of budging under those threats.

“The cruelty that they might unleash on everyday Americans using the pretense of a shutdown is only going to backfire against them,” he said during an interview with The Associated Press and other outlets at the Capitol.

Still, the shutdown, no matter how long it lasts, could have far-reaching effects on the economy. Roughly 750,000 federal employees could be furloughed, according to the nonpartisan Congressional Budget Office, and they could lose out on $400 million in daily wages. That loss in wages until after the government reopens could drive down wider demand for goods and services.

“All around the country right now, real pain is being endured by real because the Democrats have decided to play politics,” said House Speaker on Friday.

Who will take the blame?

The American public usually spreads the blame around to both major political parties when it comes to a government shutdown. While Trump took a significant portion of the blame during the last partial government shutdown in 2018 as he demanded funding for a U.S.-Mexico border wall, this standoff could end differently because now it is Democrats making the policy demands.

Still, lawmakers were relentlessly trying to make their case to the American public with a constant beat of news conferences, social media videos and livestreams. Congressional leaders have been especially active.

Both sides expressed confidence that the other would ultimately be found at fault. And in the House, party leaders seemed to be moving farther apart rather than closer to making a deal to end the shutdown.

Jeffries on Thursday called for a permanent extension to the . Meanwhile, Johnson and Thune told reporters that they would not negotiate on the tax credits until the government is reopened.

Talks in the Senate

A few senators have engaged in bipartisan talks about launching negotiations on extending the ACA tax credits for one year while the Senate votes to reopen the government for several weeks. But those discussions are in their early stages and appear to have little involvement from leadership.

As senators prepared for their last scheduled vote for the week on Friday, they appeared resigned to allow the shutdown to continue at least into next week. Thune said that if the vote failed, he would “give them the weekend to think about it” before holding more votes.

Sen. Amy Klobuchar, in a floor speech, called for Republicans to work with her and fellow Democrats to find “common ground” on the ACA subsidies, saying their expiration would impact plenty of people in states with GOP senators — especially in rural areas where farmers, ranchers and small business owners purchase their own health insurance.

“Unfortunately, right now our Republican colleagues are not working with us to find a bipartisan agreement to prevent the government shutdown and address the health care crisis,” she said. “We know that even when they float ideas — which we surely do appreciate — in the end the president appears to make the call.”

Colonna’s Shipyard invests $79M to build 4th drydock

Norfolk-based , the oldest continuously operating family-owned shipyard in the United States, announced it has invested $79 million to build its fourth drydock.

According to a Friday news release from the shipyard, the new drydock in is expected to have an approximate lifting capacity of 25,000 tons and will allow Colonna’s to improve capabilities in providing ship repair and maintenance services to maritime clients.

“‘Made in America’ means ‘Made in Virginia,’ and with this major investment by Colonna’s Shipyard, that is especially true for America’s naval and commercial maritime industry,” said in a statement. “The of this new drydock is not just an investment in infrastructure; it’s an investment in the long-term strength of our national and commercial fleet support.”

The new drydock, under construction and slated for delivery in the first half of 2028, will be 147 feet wide and 725 feet long.

“This new drydock acquisition is a testament to our continued dedication to quality service, on-time delivery and our steadfast focus on the future,” Colonna’s Shipyard Chairman and CEO Randall Crutchfield said in a statement. “The of our drydock capacity will further strengthen our ability to serve both our commercial and government clients, ensuring that we can meet their ever-evolving needs with unmatched expertise and reliability.

“This investment is also a continued commitment to our employees and the economic vitality of Norfolk’s industrial working waterfront, which has been an integral part of our success for over a century,” he added.

The shipyard says the new drydock continues its efforts to expand and modernize its facilities to meet the growing demand for ship repair and conversion services. In the past decade, Colonna’s Shipyard has invested more than $150 million to grow shipbuilding and sustainment capacity within its U.S. facilities.

Founded in 1875, Colonna’s provides ship repair, marine and industrial machining, and steel fabrication. Celebrating its 150th anniversary this year, Colonna’s employs more than 700 and operates three dry docks and a 1,000-metric-ton travel lift. It also supplies on-site welding services and has expanded its reach to San Diego and Kentucky.

Raytheon wins $5B Army contract

The has awarded , a subsidiary of aerospace and contractor , a roughly $5 billion contract to supply its Coyote Missile System.

According to RTX’s website, the Coyote is a rail-launched missile variant equipped with a boost rocket motor and a turbine engine, designed for high-speed counter-unmanned aircraft systems and launched effects missions. The product aims to defeat small to large unmanned aircraft systems at longer ranges and higher altitudes.

The (currently being rebranded by President Trump as the ) announced this week that under the contract, Raytheon will deliver Coyote missile launchers, kinetic and nonkinetic interceptors, and Ku-band radio frequency system radars.

The bids were solicited online, and only one bid was received. The Army Contracting Command in Redstone Arsenal, Alabama, will determine work locations with each order. The DOD expects the contract to be completed by Sept. 28, 2033.

RTX has more than 185,000 employees globally and reported more than $80.73 billion in 2024 sales. The contractor is the second-highest-ranked Virginia-based company on the 2025 Fortune 500. RTX’s Raytheon business unit is also based in Arlington.

Dotted Line Agency acquires Richmond peer

Henrico County’s , a creative services firm, has acquired the King Agency, a agency.

Lauren Sweeney, Dotted Line’s founder and , confirmed Thursday that the closed Oct. 1. She declined to disclose terms of the deal.

Founded in 1997 by Dave King, the King Agency’s clients have included Arby’s and Chesapeake-based First Team Auto Group. The firm’s services included brand building, and social media.

Sweeney, who launched Dotted Line in 2014, began getting to know King earlier this year after an employee suggested the pair should talk.

“We had lunch this spring and realized some of the similarities with our agencies,” Sweeney said. “And as I was learning about Dave’s plans for the future and his desire to retire, we continued to have conversations. … We came to the realization that this could be a beneficial move for both companies and teams.”

The King Agency brand was retired with the acquisition. Dotted Line will absorb King’s clients, along with its five employees, including Meggan Adams, who was vice president and director of client services at the King Agency. She and another employee are based in Atlanta, according to Sweeney.

“It’s our aspiration as well as part of our growth plans to be building out a presence in Atlanta,” Sweeney said.

Dave King is planning to retire but will serve as a consultant to the combined agency. With the acquisition, Dotted Line now has a team roster of 30.

The firm provides advertising, public relations, branding and other services. Its clients have included Bon Secours Mercy Health and Shades of Light, a Midlothian-based online lighting and home decor retailer.

With the new team members, Sweeney believes Dotted Line will be able to increase its offerings. “It really is a move to help us provide expanded capabilities to our clients,” she said.