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    

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

Société Générale purchases Shine to expand retail banking portfolio
Société Générale purchases Shine to expand retail banking portfolio
By Nikita Chaurasia

France-based multinational investment bank Société Générale S.A. has reportedly acquired Shine, a neobank for entrepreneurs, for an undisclosed sum. According to reliable sources, the acquisition will allow the financial s...

Taiwan Mobile selects Nokia for 5G connectivity in a €400 million deal
Taiwan Mobile selects Nokia for 5G connectivity in a €400 million deal
By Nikita Chaurasia

Nokia made an announcement that the Taiwan Mobile (TWM) has chosen it as the exclusive supplier of its 5G network in a 3 year framework deal valuing around 400 million euros. As per trusted sources the initial phase of the deal which includes 5G Cor...

Innoveo and SIMS join forces to transform (re)insurance ecosystem
Innoveo and SIMS join forces to transform (re)insurance ecosystem
By Nikita Chaurasia

Innoveo, a technology provider, based in Zurich, Switzerland, has recently entered into a partnership with Sidani Innovate Management Services DMCC (SIMS), a business innovation and management consultancy, headquartered in Dubai. If reports are to b...

Iridium shakes hands with Relativity Space to launch six satellites
Iridium shakes hands with Relativity Space to launch six satellites
By Nikita Chaurasia

In the recent turn of events, Relativity Space, has reportedly inked an agreement with Iridium, with an aim to launch six next-generation communication satellites of the company. As per trustworthy sources, Iridium NEXT satellites, weighing 850kg, w...

Binance China Blockchain Institute joins forces with Xinyuan Group
Binance China Blockchain Institute joins forces with Xinyuan Group
By Nikita Chaurasia

In a recent turn of events, Binance China Blockchain Institute, has reportedly signed a partnership deed with Xinyuan Group (NYSE:XIN), a Chinese real estate company with an aim to bring blockchain technology to the real estate business space. Sourc...