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E*Trade Makes Portfolio Buy

E*Trade Group Inc. Monday acquired Electronic Investing Corp., operator of eInvesting.com which provides personalized securities portfolios.

Terms of the deal were not disclosed.

The purchase is meant to further accelerate E*Trade's asset-gathering and revenue- diversification strategy, according to company officials.

Through the acquisition, E*Trade will combine its brand and distribution channel of more than 3 million customers with eInvesting's dollar-denominated securities platform.

The union is intended to enable customers to create personalized portfolios of securities via the Internet.

E*Trade customers will now be able to purchase select securities in dollar denominations rather than by shares, giving them added flexibility and choice in determining their preferred asset allocation.

E*TRADE plans to offer the personalized portfolios to individual investors as well as financial advisors and corporations, who in turn may offer the portfolios to their employees.

"Through this agreement, E*TRADE will further extend its value proposition, deepen customer relationships and increase overall share of wallet," said Christos M. Cotsakos, chairman of the board and chief executive officer, E*Trade Group.