Morgan Stanley completes acquisition of E*TRADE
09 October 2020 New York
Image: pvl / Adobestock.com
Morgan Stanley has sealed the deal on an all-stock transaction with E*TRADE after first entering into a definitive agreement to acquire the corporation in February.
The transaction was valued at approximately $13 billion.
E*TRADE common stockholders are entitled to receive 1.0432 Morgan Stanley common shares for each E*TRADE common share.
At the time the deal was inked, E*TRADE had more than 5.2 million client accounts with over $360 billion of retail client assets, which will be added to Morgan Stanley鈥檚 existing 3 million client relationships and $2.7 trillion of client assets.
"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," says James Gorman, chairman and CEO of Morgan Stanley.
Elsewhere, Michael Pizzi, CEO of E*TRADE, joins Morgan Stanley and will lead E*TRADE鈥檚 direct-to-consumer, digital self-directed business that will operate under the E*TRADE brand, and will co-lead the equity administration business.
He also joins the Morgan Stanley operating and management committees.
In addition, Shelley Leibowitz, one of E*TRADE鈥檚 independent directors, has joined the Morgan Stanley board of directors.
The transaction was valued at approximately $13 billion.
E*TRADE common stockholders are entitled to receive 1.0432 Morgan Stanley common shares for each E*TRADE common share.
At the time the deal was inked, E*TRADE had more than 5.2 million client accounts with over $360 billion of retail client assets, which will be added to Morgan Stanley鈥檚 existing 3 million client relationships and $2.7 trillion of client assets.
"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," says James Gorman, chairman and CEO of Morgan Stanley.
Elsewhere, Michael Pizzi, CEO of E*TRADE, joins Morgan Stanley and will lead E*TRADE鈥檚 direct-to-consumer, digital self-directed business that will operate under the E*TRADE brand, and will co-lead the equity administration business.
He also joins the Morgan Stanley operating and management committees.
In addition, Shelley Leibowitz, one of E*TRADE鈥檚 independent directors, has joined the Morgan Stanley board of directors.
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