US-based investment bank Morgan Stanley has entered an agreement to acquire E*TRADE Financial Corporation in an all-stock transaction valued at ~USD 13 billion.
Under the terms of the agreement, E*TRADE stockholders will receive 1.0432 Morgan Stanley shares for each E*TRADE share. E*TRADE has over 5.2 million client accounts with over USD 360 billion of retail client assets, adding to Morgan Stanley’s existing 3 million client relationships and USD 2.7 trillion of client assets. Morgan Stanley’s full-service, advisor-driven model coupled with E*TRADE’s direct-to-consumer and digital capabilities, will allow the combined business to have best-in-class product and service offerings to support the full spectrum of wealth.
The transaction will strengthen the market position of Workplace Wealth, combining E*TRADE’s US stock plan business with Shareworks by Morgan Stanley, a top provider of public stock plan administration and private cap table management solutions. This combination will enable Morgan Stanley to accelerate initiatives aimed at enhancing the workplace offering through online brokerage and digital banking capabilities, providing a significantly enhanced client experience.
The acquisition is subject to customary closing conditions, including regulatory approvals and approval by E*TRADE shareholders, and is expected to close in the fourth quarter of 2020.
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