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.