Feeds

E*Trade blows $700m on rival

Splendid

  • alert
  • submit to reddit

Remote control for virtualized desktops

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

Intelligent flash storage arrays

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Internet Security Threat Report 2014
An overview and analysis of the year in global threat activity: identify, analyze, and provide commentary on emerging trends in the dynamic threat landscape.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.