Squeezed Out On Datek, E*Trade Picks Up Tradescape

E*Trade (ET Quote), an also-ran in the bidding war for Datek, said it will exchange stock worth $100 million for online brokerage Tradescape, improving its product offerings to high-volume, high-speed traders.

E*Trade said it will exchange up to an additional $180 million in stock if various performance goals are met. The company also agreed to acquire technology uses in its Power E*Trade Pro product for $5 million in stock from A.B. Watley (ABWGE Quote).

E*Trade said the Tradescape acquisition will give it an additional 100,000 trades per day, bringing its overall transactions per day to more than 200,000, as well as access to a highly touted trading technology that is known for its speed. The acquisition doesn't include MarketXT, an electronic communication network that was owned by Tradescape. ...