Transaction

Advised: E*Trade and ESI LTD investing in a joint venture to form E*TRADE UK (Holdings)

Sign up for our updates

I would like to receive updates and news relevant to my position and industry.

 

Deal summary

E*TRADE invested in a new holding company called E*TRADE UK (Holdings) Ltd (ETUK) in return for a shareholding of approximately 28% in ETUK

  • ESI management and E*TRADE management developed a joint operating plan, and consequently agreed a memorandum of understanding at the end of January 1998
  • The investment was on a fully diluted basis.
  • The investment consisted of a combination of cash and a contribution of assets-in-kind
  • The board was keen to find a strategic partner in the US that had already been successful in online trading in the competitive US market
  • ARC Associates then worked both with ESI shareholders and management and with E*TRADE management to agree on the terms and conditions of the valuation and the terms of the Shareholders' Agreement

About Electronic Share Information Ltd

Electronic Share Information Ltd (ESI) was a market leader in offering information services over the Internet. The company had approximately 180,000 registered users.

About E*TRADE

E*TRADE is the pioneer of online trading for retail investors.

It was in the early ‘80s when a physicist and inventor developed a process to place a trade online for retail investors. This became the first online transaction sent to an exchange, and it paved the way for all main street investors to control their own investments online, without the need of a human broker.

Today, it is a leading online financial services firm that specializes in a first-class experience for the digitally inclined investor and trader, backed by personal professional guidance. E* Trade also has a high-tech custody platform for advisors and the industry’s #1-rated stock plan administration platform.

  • Deal value

    $6m

  • Location

    London, UK and New York, USA

  • Sector(s)

    Fintech, Technology

  • Deal type

    Advisory

This deal was made by

More deals by AQUAA Partners