More Green for the Orange: ING Buys Sharebuilder

ING Direct is branching out further with its no-branch direct banking niche by agreeing to acquire a like-minded Web evangelist for the safe-and-simple, long-term investment model: Seattle-based online-brokerage Sharebuilder. The $220 million buyout will add 661,000 customers (along with more than 2 million accounts, according to some reports) to grow ING’s user base above 20 million, and add retail investment products to the menu of its signature high-yield Orange savings accounts, payment accounts and home mortgages. Sharebuilder has set roots in a unique Web brokerage category by eschewing active traders, advisor-led services and minimum-balance entry points in favor of novice investors needing only limited account selections (only stocks, ETFs and options) anchored by automatic investment programs. Sharebuilder has also built up channels offline, signing up customers through marketing arrangements with banks and retailers. The acquisition by ING Direct, the U.S. arm of Dutch banking giant ING Group, is expected to close at year’s end.