Source: E*Trade Financial
E*Trade Financial Corporation (NASDAQ: ETFC) today announced that it has signed an Asset Purchase Agreement to sell substantially all of the assets of RAA Wealth Management (RAA) to PHH Investments (PHH).
This transaction and unrelated definitive and other transactions under contract, are subject to normal closing conditions, which when satisfied are anticipated to be completed within the next 90 days; as a result, the Company expects to generate approximately $80 million in proceeds.
As outlined last month in the details of its Turnaround Plan, the Company is actively working to improve capital and liquidity. Management has identified non-core assets with high market demand that will create value for the franchise through the orderly sale of such assets. The Company has also streamlined certain corporate functions to reduce expenses and will allocate these savings, as planned, to growth initiatives for its core retail business.
"We have taken swift action and are generating results to maximize the value of our assets," said R. Jarrett Lilien, acting Chief Executive Officer, E*TRADE FINANCIAL Corporation. "Effective execution of our turnaround plan will be measured by our continued ability to monetize assets, reduce balance sheet risk, streamline expenses and re-invest in growth that strengthens the overall franchise and best meets the needs of our customers."
Providing advice to E*TRADE FINANCIAL customers remains an integral component of the E*TRADE value proposition. E*TRADE will continue to offer investment and financial planning advice to its core retail and Corporate Services clients. The RAA deal is expected to close in April 2008. PHH is a Texas-based registered investment advisor specializing in providing services to airline crewmember clients.