Terms weren't disclosed, but the acquisition is expected to close in the third quarter. E*Trade said it expects the transaction to be slightly accretive in 2006, with $9.3 million in annualized fiscal 2006 revenue.
New York-based E*Trade said RAA manages more than $1 billion in assets. The acquisition strengthens its regional adviser strategy and "is expected to provide a predictable and recurring revenue stream with a scalable business platform that can manage additional client assets with minimal incremental expense," E*Trade said.
E*Trade said it "will continue to look toward acquiring established wealth management firms in key customer markets including New York City, Philadelphia, Greater Washington DC, Atlanta, Orlando, Chicago, Denver, Scottsdale, San Diego, Silicon Valley and San Francisco."