E*TRADEFinancial Corp. has agreed to acquire Aperture New Holdings Inc.for $725 million in cash.
Aperture New Holdings, a General Atlantic Service Co. LLC company, is the parentof Chicago-based OptionsHouse, which merged with tradeMONSTER in 2014.OptionsHouse currently has 154,000 customer accounts with $3.6 billion incustomer assets, including $1.4 billion in cash. It executed 27,000 DARTs forthe 12 months ended June 30, of which 63% were in options. Revenues for thelast 12 months came in at $104 million.
E*TRADE plans to fund the transaction by issuing up to $400million of noncumulative perpetual preferred stock, and paying the balance incash. The deal will boost E*TRADE's derivatives capabilities whileexpanding its customer profile with the addition of OptionsHouse'sderivative-centric traders.
The deal is subject to regulatory approvals and closingconditions, and is expected to close in the fourth quarter.
E*TRADE expects the transaction to be relatively neutral toearnings in 2017 and be accretive in 2018. The deal is expected to result innearly $65 million in annual full run-rate synergies in 2018.
Credit Suisse and Skadden Arps Slate Meagher & Flomadvised E*TRADE on the deal. Aperture was advised by Evercore and Paul WeissRifkind Wharton & Garrison. Jefferies also acted as financial adviser toAperture.