In a move designed to build its position as a provider of financial news, online brokerage E*Trade Group Inc said Monday that has agreed to acquire of ClearStation Inc. ClearStation operates a free, advertising-supported web site that provides technical and fundamental analysis and a community for investors.
The company, which began in July of last year and already claims 90,000 registered members, will be operated as a subsidiary of E*Trade through an independent web site. Financial details of the acquisition were not disclosed, but the deal will be carried out through a share swap and will be accounted for as a pooling of interests. The deal is expected to close within 30 days.
E*Trade says that since the launch of its Destination E*Trade public site strategy last September, it has both significantly expanded the content available on its site and become the most visited web site operated by an online financial services company. It points to Media Metrix numbers that show its internet audience exceeded the combined reach of Charles Schwab & Co and Ameritrade in February. The addition of ClearStation is expected to solidify that lead.
