Morgan Stanley wraps up acquisition of electronic trading platform E*TRADE

Morgan Stanley acquisition of E*TRADE : US investment bank Morgan Stanley has closed its previously announced $13 billion acquisition of electronic trading platform E*TRADE Financial.

Based in Virginia, E*TRADE and its subsidiaries offer brokerage and banking products and services to traders, investors, stock plan administrators and participants, and registered investment advisers (RIAs).

Established in 1982, E*TRADE is claimed to have over 5.2 million client accounts and over $360 billion of retail client assets, at the time of signing the deal.

Morgan Stanley acquisition of E*TRADE was announced in February 2020. The all-stock deal was closed following the receipt of approval from the US Federal Reserve Board.

As per the terms of the agreement, E*TRADE shareholders will be issued 1.0432 Morgan Stanley common shares for each of their shares. The deal values E*TRADE at $58.74 per share.

Morgan Stanley acquisition of E*TRADE. Photo courtesy of Thomas Hundt/Wikipedia.org.

E*TRADE’s direct-to-consumer, digital self-directed business will operate under the E*TRADE brand. It will be led by E*TRADE CEO Michael Pizzi, who will join Morgan Stanley.

In addition to that, Michael Pizzi will be co-leading the equity administration business and will be a member of the Morgan Stanley Operating and Management Committees.

Commenting on Morgan Stanley acquisition of E*TRADE, James P. Gorman -Chairman and CEO of Morgan Stanley said: “The addition of E*TRADE positions us as an industry leader in Wealth Management across all channels and segments, and significantly increases the scale and breadth of our Wealth Management franchise, which now oversees $3.3 trillion in assets.

“E*TRADE has built a best-in-class, direct-to-consumer digital channel and a strong brand over the past 38 years. The addition of their premier offering will provide enhanced capabilities to all our clients and Financial Advisors.”