Etrade Buys: Optionshouse

The acquisition of by E*TRADE Financial Corporation in 2016 marked a pivotal shift in the retail brokerage landscape, signaling a renewed focus on high-volume derivatives trading. Deal Structure and Financials

: CEO Paul Idzik noted the deal was intended to "intensify our derivatives firepower" after E*TRADE's market position in options had leveled off following the 2008 financial crisis. etrade buys optionshouse

: E*TRADE was advised by Credit Suisse and Skadden, Arps, Slate, Meagher & Flom, while Aperture was advised by Evercore and Paul, Weiss, Rifkind, Wharton & Garrison. Strategic Rationale The acquisition of by E*TRADE Financial Corporation in

: E*TRADE agreed to acquire Aperture New Holdings, Inc., the parent company of OptionsHouse, for $725 million in cash . Strategic Rationale : E*TRADE agreed to acquire Aperture

: The deal was funded through a combination of existing cash and the issuance of up to $400 million in non-cumulative perpetual preferred stock .

: Nearly 63% of OptionsHouse trades were in options rather than standard equities, providing E*TRADE with a highly active, profitable user base.