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M&A Report: E*TRADE, TD Ameritrade, and Delphi Technologies

M&A Report: E*TRADE, TD Ameritrade, and Delphi Technologies

In‌ ‌keeping‌ ‌with‌ ‌our‌ ‌mission‌ ‌to‌ ‌provide‌ ‌comprehensive‌ ‌advertising‌ ‌analysis,‌ ‌MediaRadar‌ ‌puts‌ together‌ ‌a‌ ‌report‌ ‌of‌ ‌the‌ ‌most‌ ‌important‌ ‌mergers‌ ‌and‌ ‌acquisitions‌ ‌news‌ ‌each‌ ‌week.‌ ‌Stay‌ ‌in‌ ‌the‌ loop,‌ ‌whether‌ ‌you‌ ‌sell‌ ‌advertising‌ ‌space‌ ‌or‌ ‌focus‌ ‌on‌ ‌business‌ ‌development.‌

This week, Morgan Stanley acquired E*TRADE, Schwab gained TD Ameritrade, and BorgWarner purchased Delphi Technologies.

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Morgan Stanley Gains E*TRADE

Morgan Stanley completed the acquisition of E*TRADE Financial Corporation in an all-stock transaction worth $13 billion. 

E*Trade is an electronic trading platform that trades stocks, ETFs, mutual funds, and other financial assets. Since the announcement of the deal back in February, E*Trade has experienced rapid growth in new accounts opened, partially as a result of the stay-at-home orders due to the ongoing pandemic; over 770k new accounts have opened year-to-date. 

The addition of E*Trade will increase Morgan Stanley’s wealth management franchise to $3.3 trillion in assets and add approximately $3 billion in revenue to Morgan Stanley’s top line. E*Trade will continue to operate under its name and provide commission-free trades to its customers. 

Charles Schwab Purchases TD Ameritrade

In yet another consolidation in the financial industry, Charles Schwab Corporation completed its purchase of online brokerage TD Ameritrade for $26 billion. 

This acquisition creates a combined company with more than $6 trillion in client assets, 28 million brokerage accounts, and more than 5 million daily trades. In the meantime, TD Ameritrade and Schwab will continue to operate as separate brokerages, as the integration of the two brands will take place over the next 18 to 36 months. 

TD Ameritrade is one of the largest online brokers in the industry, but fierce competition in recent years has pressured discount brokerage firms to reduce commissions to zero. With the loss in commission revenues, brokerage firms have sought to consolidate and scale to lower operating expenses. 

BorgWarner Acquired Delphi Technologies

Automotive components and parts supplier BorgWarner Inc. announced that it has closed the acquisition of automotive aftermarket products manufacturer Delphi Technologies in an all-stock transaction that values Delphi at about $3.2 billion. 

The acquisition will bolster BorgWarner’s electronics and power electronics products, capabilities, and scale. Delphi Technologies’ breadth of combustion propulsion products will also enhance BorgWarner’s commercial vehicle and aftermarket businesses. 

As the auto industry moves toward a wider range of vehicles that offer and focus on clean energy,  BorgWarner believes that the acquisition will better position it to lead the industry in propulsion products and systems across combustion, hybrid and electric vehicles.

In‌ ‌Other‌ ‌News‌ ‌

Here are other noteworthy deals coming up soon:

  • Digital media venture equity firm North Equity announced that it has acquired a number of media brands from magazine publisher Bonnier Corporation.
  • Just days after closing its acquisition of E*Trade, Morgan Stanley announced that it plans to buy fund manager Eaton Vance Corp. for $7 billion in a cash and stock deal.
  • Caterpillar Inc. is set to acquire the Oil & Gas Division of the Weir Group PLC, a Scotland-based global engineering business, in a $405 million cash deal.
  • Steris plc is buying surgical equipment maker Key Surgical from investor Water Street Healthcare Partners LLC for $850 million.
  • Rite Aid is acquiring 130-year-old Seattle-area family-owned drugstore chain Bartell Drugs for $95 million.
  • In a surprising move indeed — if it’s true — AT&T is said to be putting DirecTV up for sale.
  • Santa Clara, California-based company Momentus is making a move to go public.