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E*Trade to buy OptionsHouse for $725 million

Staff Writer | July 25, 2016
E*Trade Financial said it will buy the parent of online brokerage OptionsHouse for $725 million in cas.
E*Trade Financial
Acquisition   OptionsHouse executed 27,000 daily average revenue trades
OptionsHouse executed 27,000 daily average revenue trades for the twelve months ended June 30, of which 63 percent were in options, E*Trade said.

Chicago-based OptionsHouse currently operates 154,000 customer accounts and has $3.6 billion in customer assets, including $1.4 billion in cash.

E*Trade, which operates a discount broker-dealer and a bank, said it intends to help finance the deal by issuing up to $400 million of preferred stock.

The company said it expected the deal, which is likely to close in the fourth quarter, to add to earnings in 2018.


 

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