Feeds

E*Trade blows $700m on rival

Splendid

  • alert
  • submit to reddit

Eight steps to building an HP BladeSystem

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

Mobile application security vulnerability report

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
White? Male? You work in tech? Let us guess ... Twitter? We KNEW it!
Grim diversity numbers dumped alongside Facebook earnings
Bose says today IS F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
HP, Microsoft prove it again: Big Business doesn't create jobs
SMEs get lip service - what they need is dinner at the Club
ITC: Seagate and LSI can infringe Realtek patents because Realtek isn't in the US
Land of the (get off scot) free, when it's a foreign owner
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.