E-Trade Financial Corp. announced plans Tuesday to buy Kobren Insight Management, a Boston registered investment advisory firm that manages about $1 billion for private clients.
The deal would advance E-Trade's regional adviser strategy, offering personalized wealth management services to its retail and corporate services clients with more than $250,000 of assets. The New York company said it expects the deal to contribute nearly $10 million of revenue and $2.3 million of net income in its 2006 fiscal year. The deal's terms were not disclosed.
E-Trade has been working since early this year to expand into a fully integrated financial services company. In January, it bought Howard Capital Management, and on Monday it announced a deal to buy the Harrisdirect discount brokerage business.
E-Trade said it will keep looking toward deals for wealth management companies in New York, Philadelphia, Washington, Atlanta, Orlando, Chicago, Dallas, Denver, San Diego, San Francisco, Orange County and Silicon Valley, Calif., and Scottsdale, Ariz. The Kobren deal is expected to close in the fourth quarter; as an E-Trade subsidiary the advisory firm would continue to operate under the Kobren name, retaining both its employees and offices.
