Charles Schwab Acquires OptionsXpress For $1 Billion
The Charles Schwab Corporation (NYSE:SCHW) is going to acquire online options trading company OptionsXpress for $1 billion in stock. 1.02 shares of Schwab stock will be exchanged for each share of OptionsXpress. This values OptionsXpress at $17.91, which is a 17% premium on the company’s closing stock price on Friday. OptionsXpress will remain as separate brand identities for the time being.
“The combination of OptionsXpress and Schwab will offer active investors an unparalleled level of service and platform capabilities. OptionsXpress’s industry-leading and award-winning client tools will be well received by our existing active investor clients who are increasingly using options and other trading strategies as a key part of their total approach to investing,” said Walt Bettinger, Schwab’s chief executive.
[NYT]This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry