Morgan Stanley announced it’s acquiring E*TRADE in an all-stock transaction valued at approximately $13 billion. The combined platforms will have $3.1 trillion in client assets, 8.2 million retail client relationships and accounts, and 4.6 million stock plan participants. It is the biggest takeover by a major US bank since the financial crisis, according to the WSJ.
The combination is expected to accelerate Morgan Stanley’s transition to a more balance sheet light business mix and more durable sources of revenue, and create a player in Workplace Wealth, combining E*TRADE’s US stock plan business with Shareworks by Morgan Stanley, a provider of public stock plan administration and private cap table management solutions.
“E*TRADE’s products, innovation in technology, and established brand will help position Morgan Stanley as a top player across all three channels: Financial Advisory, Self-Directed, and Workplace,” said James Gorman, chair and CEO of Morgan Stanley, in a statement.