E-Trade Continues Diversification Through Lending Acquisition
Online financial-services firm to buy Ganis Credit for $101 million.
E-Trade Group Inc. continues its aggressive move into new markets as the Internet-based financial-services firm further diversifies its business lines. The company said Tuesday that its E-Trade Bank division will acquire the consumer-finance business Ganis Credit Corp., a U.S. subsidiary of Deutsche Bank AG, for approximately $101 million. The deal is expected to close next year.
The acquisition will let E-Trade offer customers loans for recreational vehicles and marine and motor-sport equipment. E-Trade will take on $1.7 billion in recreational vehicle, marine, and motor-sport loans from the sale.
E-Trade, which made its name in the 1990s as one of the largest online-only discount brokerages, has been working toward becoming a full-service financial institution through a string of acquisitions during the past few years. Today, the company's brokerage services garner only one-third of E-Trade's revenue, with mortgages and other services making up the rest. Conversely, in 1998, brokerage fees and commissions accounted for 80% of the company's revenue, says Connie Dotson, chief communications and knowledge officer at E-Trade.
By adding more products, president and chief operating officer Mitch Caplan says, E-trade will be able to cross-sell to customers and offer one-stop online and in-person financial services.
5 Top Federal Initiatives For 2015As InformationWeek Government readers were busy firming up their fiscal year 2015 budgets, we asked them to rate more than 30 IT initiatives in terms of importance and current leadership focus. No surprise, among more than 30 options, security is No. 1. After that, things get less predictable.