Feeds

E*Trade blows $700m on rival

Splendid

  • alert
  • submit to reddit

Choosing a cloud hosting partner with confidence

E*Trade - the online broker and e-bank - is splashing out $700m in cash to buy Canada-based rival Harrisdirect.

The transaction, which still needs the usual regulatory rubber stamps, is expected to close by October.

Harrisdirect - which is owned by BMO Financial Group - has around 430,000 active accounts with an average balance of more than $70,000. As part of the deal announced yesterday, E*Trade will handle a further 15,000 trades a day and will be able to market its services to more than 300,000 punters.

Once the deal is completed, E*Trade will handle more than four million accounts and around 130,000 trades a day. BMO's decision to flog Harrisdirect followed a review of the business. Execs found that it would have cost too much to continue growing the business and that the cash could be used instead for something altogether more profitable.

The transaction is expected to deliver pre-tax operating synergies of approximately $186m, which will be comprised of $114m in expense synergies and $72m in revenue synergies, said E*Trade in a statement. ®

Related stories

NatWest issues cash card to Dick Head
Zopa the bank that likes to say 'Hello There!'
Egg soldiers on

Beginner's guide to SSL certificates

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
I'll be back (and forward): Hollywood's time travel tribulations
Quick, call the Time Cops to sort out this paradox!
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
prev story

Whitepapers

Go beyond APM with real-time IT operations analytics
How IT operations teams can harness the wealth of wire data already flowing through their environment for real-time operational intelligence.
10 threats to successful enterprise endpoint backup
10 threats to a successful backup including issues with BYOD, slow backups and ineffective security.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Website security in corporate America
Find out how you rank among other IT managers testing your website's vulnerabilities.