Morgan Stanley acquires E*TRADE in stock transaction for $13 billion

By Nikita Chaurasia  | Date: 2020-02-22

Morgan Stanley acquires E*TRADE in stock transaction for $13 billion

Morgan Stanley, a renowned US-based investment banking firm, reportedly announced the acquisition of E*TRADE Financial Corporation, a financial services company offering a platform to trade financial assets. The company would acquire E*TRADE through an all-stock transaction for about $13 billion.

The combination would substantially increase the breadth and scale of Wealth Management franchise of Morgan Stanley, and further positions the company to be a market leader in Wealth Management in all channels as well as wealth segments.

E*TRADE has more than 5.2 million client accounts along with more than $360 billion retail client assets, adding to the current 3 million client relationships of Morgan Stanley as well as its client assets of approximately $2.7 trillion.

Digital and direct-to-customer capabilities of E*TRADE combined with Morgan Stanley’s advisor-driven, and full-service model would enable the business to have extraordinary service and product offerings to help the complete spectrum of wealth.

Chairman and CEO, Morgan Stanley, James Gorman stated that E*TRADE is an important development opportunity for the company’s Wealth Management business and also a leap ahead in its Wealth Management strategy. This acquisition adds a new iconic brand in the direct-to-customer channel to the company’s advisor-driven model, while also creating a Workplace Wealth provider for companies and employees.

Gorman further added that E*TRADE’s innovation in technology, products, and its well-established brand name would help the company be the leading market player in all three channels: Workplace, Self-Directed, and Financial Advisory. In addition, this acquisition further continues the decade-long transition of the company towards a better balance sheet light market mix, focusing on more endurable sources of income.

Chief Executive Officer, E*TRADE, Mike Pizzi stated that after the establishment of the digital brokerage department approximately 40 years ago, the company has constantly disrupted the status quo and offered cutting-edge services and tools to traders, investors, as well as stock plan administrators.

Pizzi further added that by integrating into Morgan Stanley, the company would be able to take its combined offering to another level and provide a better, comprehensive suite of the wealth management capabilities.

 

Source credit: https://www.morganstanley.com/press-releases/morgan-stanley-to-acquire-e-trade

About Author

Nikita Chaurasia     aeresearch.net

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More >>

More News By Nikita Chaurasia

Pacific Island pushes Japan to delay wastewater release from Fukushima

Pacific Island pushes Japan to delay wastewater release from Fukushima

By Nikita Chaurasia

Pacific Island nations have reportedly pushed Japan to postpone the release of Fukushima nuclear power plant wastewater due to concerns that it may pollute fishing grounds. An appeal was made on Wednesday when Japan announced that treated sewage f...

Activist groups take Danone to court over excessive use of plastics

Activist groups take Danone to court over excessive use of plastics

By Nikita Chaurasia

Danone, the French bottled water and yogurt firm, is reportedly being sued in court by three environmental activists’ groups for failing to cut its plastic footprint significantly. According to the groups, the maker of Evian and Volvic miner...

Bosch expands security with dashcams designed for rideshare drivers

Bosch expands security with dashcams designed for rideshare drivers

By Nikita Chaurasia

Bosch, the German technology company, has reportedly expanded its security footprint in the ridesharing market with the launch of its latest security dashcams. At CES 2023, Las Vegas, the German tech firm unveiled a new integrated smart camera on ...

Australia: PM Albanese denies potential $450M payout to Rio Tinto

Australia: PM Albanese denies potential $450M payout to Rio Tinto

By Nikita Chaurasia

Australia's Prime Minister Anthony Albanese has reportedly denied rumors that Rio Tinto and its partners could receive a $450 million settlement for the Gladstone power station, which would bring the total compensation for the coal price limit to...

UK: Firms still struggle with post-Brexit trading and red tape

UK: Firms still struggle with post-Brexit trading and red tape

By Nikita Chaurasia

Businesses in the UK are still reportedly grappling after two years following the beginning of post-Brexit trading, as suggested by a new report. According to the British Chambers of Commerce (BCC), firms are still battling increased red tape and ...