ETrade agrees to acquire OptionsHouse parent for $725 million

ETrade Financial Corp. announced Monday that it will acquire Aperture New Holdings Inc., the parent company of OptionsHouse, for $725 million. The deal boosts ETrade’s derivatives capabilities, the company said in a statement. OptionsHouse has 154,000 customer accounts with $3.6 billion in assets, including $1.4 billion in cash. The company had 27,000 daily average revenue trades for the 12-month period ending June 30, of which 63% were in options. Revenue for the period totaled $104 million. ETrade said it expects the acquisition to be neutral to earnings in 2017 and accretive in 2018, and it expects to generate $65 million in annual synergies. ETrade shares are up 0.7% in Monday premarket trading, but down 13% for the year to date. The S&P 500 Index is up 6.4% for the year so far.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

…read more

From:: Stock Market News

Leave a Reply