E*Trade acquires Web Street in $45 million deal

E*Trade acquires Web Street in $45 million deal

E*Trade is to acquire Chicago-based online brokerage firm Web Street Securities in an all-stock transaction valued at $45 million.

The purchase includes Web Street Securities' 34,000 active accounts, including 6300 accounts held by German residents, and its physical locations in San Francisco, Boston, Beverly Hills and Denver, which will be converted into E*Trade financial superstores.

The transaction is expected to add incremental annual revenues of approximately $25 million to E*Trade's results. Of the $45 million purchase price, $25 million represents the acquisition of the brokerage business and accounts. The remaining $20 million applies to the acquisition of the four physical locations, cash on hand and net operating losses expected to result in future tax savings.

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