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E*Trade Acquisitions Further Online Trading Consolidation
MENLO PARK, CA - April 10, 2002 - One day after the nation's two largest online stock brokers (Ameritrade and Datek) stated an intention to merge, LA-based E*Trade announced consolidation plans of its own. The company intends to purchase privately held Tradescape for $100 million in common stock.
E*Trade officials stated that the deal would lift earnings by nearly doubling the company's trading volume. E*Trade ranks as the third-place online broker in number of accounts, and forth-place in assets.
The company also said it had purchased online trading software it had been licensing from broker A.B. Watley for $5 million.
E*Trade has been acquiring aggressively, having completed a $173.5 million acquisition of Dempsey & Company, a Nasdaq market-maker, last October.
The combined company has been particularly active in Bulletin Board stocks, with 26% of the volume of those shares traded in March, according to J.P. Morgan Securities.
"E*TRADE Financial is rigorously disciplined in the execution of our very focused business model and acquisition strategy. It is based on finding those opportunities which are priced right for the marketplace and that add significant value to the Company, our shareowners and our stakeholders," said Christos M. Cotsakos, Chairman/CEO, E*TRADE Group, Inc.
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