ING Group NV's deal to purchase ShareBuilder Corp. would help the Amsterdam company reach young investors through the Internet, according to observers.
ING has long stressed that simplicity is critical to its strategy, and the deal for ShareBuilder seems to fit that pattern.
The Bellevue, Wash., brokerage company offers an entry-level online investment service with a simple fee structure and an automated investment plan reminiscent of ING's automated savings system.
The $220 million deal for ShareBuilder was announced last week and is expected to close this quarter. ING would roll the business into its ING Bank FSB of Wilmington, Del.
Spokespeople for both companies said that executives would not discuss the purchase until it closes.
In its announcement of the deal, ING said it expects the purchase to bring in about 661,000 customers, which would increase its global customer base to more than 20 million people.
It would not provide a current age breakdown for its U.S. customers, but in recent years it has made several efforts to reach young people; it even offers a Web site for children, OrangeKids.com, and provides teachers with financial education materials.
Edward Woods, a senior analyst for the Boston market research firm Celent LLC, said that buying ShareBuilder would be a good way for ING to serve its younger customers.
"Clearly, you want to get the next generation's assets, and to get them, you have to get something that works for them," Mr. Woods said.
ING may have noticed some of its customers moving money from basic savings accounts to ShareBuilder or other online brokerages, Mr. Woods said. "I have a sneaking suspicion that's probably what happened."
Other online financial companies are trying to offer young consumers an easy way to manage what can be very complex financial transactions. Geezeo Inc., which launched an online account aggregation service for monitoring deposit and credit card accounts in July, added an investment account-tracking service last month.
Peter Glyman, a co-founder of the Framingham, Mass., company, said that many people in their 20s begin investing the moment they join the work force.
"Anybody that's taking a new job out of school, chances are they're taking part in a 401(k) plan," Mr. Glyman said. "Investments are a part of your financial portfolio, and if you leave that out, you're missing a big part."
College students in particular are interested in investments because it adds an element of fun to financial management, Mr. Glyman said. "Budgeting isn't that exciting, but seeing your money change day to day based on investments is exciting."
Shawn Ward, another Geezeo co-founder, said that many of its users also have ShareBuilder accounts, and that many of them are college students or recent graduates, though he could not provide exact numbers.
ShareBuilder appeals to young investors because they can "trade any dollar amount, even $50 or $100, in any stock" by purchasing fractions of shares, Mr. Ward said. At other online brokerages, "people need $2,000 to $3,000 to place an order, or it really becomes cost prohibitive" because of the associated fees.
