- Adds significant experience servicing corporate customers and mass
affluent individuals
- Transaction expected to be slightly accretive in 2006
NEW YORK, May 30 /PRNewswire-FirstCall/ -- E*TRADE FINANCIAL
Corporation (NYSE: ET) today announced its intent to acquire Retirement
Advisors of America (RAA), a Dallas, Texas-based registered investment
adviser managing over $1 billion in assets(1). The acquisition strengthens
E*TRADE FINANCIAL's regional adviser strategy, which delivers localized
wealth management services and advice to retail and Corporate Services
clients with a minimum of $250,000 in assets. RAA joins the E*TRADE Wealth
Management network of Howard Capital Management (Los Angeles and New York),
Kobren Insight Management (Boston) and the investment adviser group of
Harrisdirect LLC, totaling nearly $3 billion in assets under management.
With nearly 1,300 high-value client relationships, the RAA acquisition
is expected to provide a predictable and recurring revenue stream with a
scalable business platform that can manage additional client assets with
minimal incremental expense. E*TRADE FINANCIAL expects the transaction to
be slightly accretive in 2006, with approximately $9.3 million in
annualized revenues in FY 2006.
"An increasing number of E*TRADE FINANCIAL customers are seeking
support in making more complex financial decisions," said Jon Foster, Head
of Wealth Management, E*TRADE FINANCIAL. "With the acquisition of RAA,
E*TRADE FINANCIAL enhances its advisory service for customers in Texas -- a
state with a high concentration of our retail and Corporate Services
customers."
The RAA acquisition is expected to close in Q3 2006, following
customary closing conditions. E*TRADE FINANCIAL will continue to look
toward acquiring established wealth management firms in key customer
markets including New York City, Philadelphia, Greater Washington DC,
Atlanta, Orlando, Chicago, Denver, Scottsdale, San Diego, Silicon Valley
and San Francisco.
"RAA's new relationship with E*TRADE FINANCIAL should prove to be
highly advantageous to our clients," said Scott Frost, RAA's CEO. "RAA was
attracted to E*TRADE FINANCIAL's history of innovation, its client-centered
culture, as well as the Company's commitment to providing multiple channels
for wealth advisory services to customers."
As a subsidiary of E*TRADE FINANCIAL, Retirement Advisors of America
will operate in a manner consistent with past practices of the former
company, retaining its senior management team, all of its personnel, and
its complete offering of investment and retirement services. Terms of the
agreement were not disclosed.
About E*TRADE FINANCIAL
The E*TRADE FINANCIAL family of companies provides financial services
including trading, investing, cash management and lending for retail and
institutional customers. Securities products and services are offered by
E*TRADE Securities LLC (Member NASD/SIPC). Bank and lending products and
services are offered by E*TRADE Bank, a Federal savings bank, Member FDIC,
or its subsidiaries.
Important Notice
E*TRADE FINANCIAL and the E*TRADE FINANCIAL logo are registered
trademarks or trademarks of E*TRADE FINANCIAL Corporation. The statements
contained in this news release that are forward-looking are based on
current expectations that are subject to a number of uncertainties and
risks, and actual results may differ materially. The uncertainties and
risks include, but are not limited to, changes in market activity,
anticipated increases in the rate of new customer acquisition, the
conversion of new visitors to the site to customers, the activity of
customers and assets held at the institution, seasonality, the development
and enhancement of products and services, competitive pressures (including
price competition), system failures, economic and political conditions,
changes in consumer behavior and the introduction of competing products
having technological and/or other advantages. Further information about
these risks and uncertainties can be found in the information included in
the annual reports previously filed by E*TRADE Group, Inc. or E*TRADE
FINANCIAL Corporation with the SEC on Form 10-K (including information
under the caption "Risk Factors") and quarterly reports on Form 10-Q.
E*TRADE FINANCIAL Corporation. All rights reserved.
E*TRADE FINANCIAL Media Contact
Pam Erickson
E*TRADE FINANCIAL Corporation
617-296-6080
pam.erickson@etrade.com
E*TRADE FINANCIAL Investor Relations Contact
Adam Townsend
E*TRADE FINANCIAL Corporation
703-236-8719
adam.townsend@etrade.com
(1) Assets as of 12/31/05
SOURCE E*TRADE FINANCIAL Corporation
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Related links:
http://www.etrade.com
CONTACT:
E*TRADE FINANCIAL Media Contact - Pam
Erickson, E*TRADE FINANCIAL Corporation, +1-617-296-6080,
pam.erickson@etrade.com; E*TRADE FINANCIAL Investor Relations
Contact - Adam Townsend, E*TRADE FINANCIAL Corporation,
+1-703-236-8719, adam.townsend@etrade.com
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