E*Trade is to acquire privately-held active trading platform Tradescape for an initial consideration of $100 million in common stock, and online broking technology from AB Watley, valued at $5 million.
The combined acquisitions allow a broader customer base to access E*Trade - both online and offline.
The purchase of Tradescape and its technology platform provides E*Trade with more facilities for active traders and 20 new trading locations. The terms of the deal include $100 million in common stock and additional contingent stock consideration of up to $180 million. The acquisition does not include Market XT, which remains a subsidiary of Tradescape Corp.
The online trading technology from AB Watley provides the data delivery and presentation layer portions that power parts of the company's Power E*Trade Pro product. Ownership of the code offers E*Trade the opportunity to independently manage product development.