Divestiture • Internet Software and Services

ETrade Acquires BrownCo

On September 29, 2005, ETrade acquired internet software and services company BrownCo from JPMorgan Chase for 1.6B USD

Acquisition Context
  • This is ETrade’s 1st transaction in the Internet Software and Services sector.
  • This is ETrade’s largest (disclosed) transaction.
  • This is ETrade’s 3rd transaction in the United States.
  • This is ETrade’s 1st transaction in Massachusetts.

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M&A Deal Summary

Date September 29, 2005
Target BrownCo
Sector Internet Software and Services
Buyer(s) ETrade
Sellers(s) JPMorgan Chase
Deal Type Divestiture
Deal Value 1.6B USD

Target Company

BrownCo

Boston, Massachusetts, United States
BrownCo LLC is a provider of an online brokerage services.
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Buyer Overview 1

Buyer

ETrade

New York City, New York, United States

Category Company
Founded 1982
Sector Financial Services
Employees4,105
Revenue 2.9B USD (2018)
DESCRIPTION
E*TRADE Financial office branch in downtown Chicago, Illinois.
E*TRADE Financial office branch in downtown Chicago, Illinois.

E*TRADE Financial Corp. is a financial services company that provides online brokerage, investing, and related banking solutions. E*TRADE Financial was founded in 1982 and is based in New York, New York.


Deal Context for Buyer #
Overall 3 of 5
Sector: Internet Software and Services 1 of 3
Type: Divestiture 2 of 2
State: Massachusetts 1 of 1
Country: United States 3 of 5
Year: 2005 2 of 2
Size (of disclosed) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-08-08 HARRISdirect

Jersey City, New Jersey, United States

HARRISdirect LLC is a provider of a retail banking products and solutions.

Buy $700M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-07-14 E*TRADE Canada

Toronto, Ontario, Canada

E*TRADE Canada is a provider of online brokerage services in Canada.

Sell $442M

Seller Profile 1

SELLER

JPMorgan Chase

New York, New York, United States

Category Company
Founded 1799
Sector Financial Services
Employees311,921
Revenue 177.4B USD (2024)
DESCRIPTION
Entrance to Chase Tower in downtown Chicago, Illinois.
Entrance to Chase Tower in downtown Chicago, Illinois.

JPMorgan Chase is a financial institution provides investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. JPMorgan Chase was founded in 1799 and is based in New York, New York.


Deal Context for Seller #
Overall 2 of 12
Sector: Internet Software and Services 1 of 1
Type: Divestiture 2 of 7
State: Massachusetts 1 of 1
Country: United States 2 of 10
Year: 2005 1 of 1
Size (of disclosed) 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-23 Neovest

Orem, Utah, United States

Neovest, Inc. a developer of Proactive Intelligent TechnologyTM designed to make traders and investors more productive. Neovest's products incorporate a unique server technology (NEBO) designed by Neovest, that enables fast, efficient delivery of market data from multiple sources and drives real-time data analysis and decision support, creating a powerful equity trading solution.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-01 Collegiate Funding Services

Fredericksburg, Virginia, United States

Collegiate Funding Services, Inc., an integrated education finance company, engages in originating, financing, marketing, and servicing education loans in the United States. It assists consumers in financing and refinancing in the areas of undergraduate, graduate, professional, career, and continuing education training.

Buy $663M