eTrade 2002 Annual Report Download - page 114

Table of Contents
Index to Financial Statements
3.BUSINESS COMBINATIONS
Purchase Acquisitions
During fiscal 2002, fiscal 2001, the three months ended December 31, 2000 and fiscal 2000, the Company completed several acquisitions that
were accounted for under the purchase method of accounting. The results of operations of each acquisition are included in the Company’ s
consolidated statement of operations from the date of each acquisition. A summary of the Company’ s purchase transactions for the above
periods is included in the following table (in millions):
Entity Name and Description of Business Acquired Date Goodwill Form of Consideration
Fiscal 2002 Acquisitions:
Ganis Credit Corporation
Consumer loan portfolio and loan origination platform
12/02 $ 34.0 $
$
56.2
1,834.1
Cash
Assumed debt to seller, $1,797.9 retired concurrent with initial settlement
Engelman Securities, Inc.
Privately-held specialist and market-making firm
12/02 $ — $
$
6.5
0.5
1.3 shares of common stock issued
Cash
A.B. Watley Group, Inc.
Purchase of online trading technology
7/02 $ — $ 2.4 0.5 shares of common stock issued
E*TRADE Professional Trading
Direct access brokerage firm
6/02 $ 87.5 $ 83.1 11.8 shares of common stock issued
Fiscal 2001 Acquisitions:
Dempsey & Company, LLC(1)
Privately-held specialist and market-making firm
10/01 $ 143.8 $
$
153.4
20.0
28.9 shares of common stock issued
Cash
Web Street, Inc.(2)
Provider of online brokerage services
6/01 $ — $
$
43.5
0.7
4.9 shares of common stock issued 0.4 shares of common stock issuable
E*TRADE Mortgage Corporation (formerlyLoansDirect,Inc.)
Online distribution mortgage originator
2/01 $ 32.6 $
$
33.0
1.5
3.0 shares of common stock issued
Assumed vested employee stock options
Three Months Ended December 31, 2000 Acquisitions:
E*TRADE Advisory Services, Inc.
(formerly, PrivateAccounts, Inc.)
Developer of online separately managed accounts
10/00 $ 7.5 $ 17.4 0.6 shares of common stock issued at closing
1.2 shares of common stock issued upon milestone achievements through fiscal 2001
E*TRADE Bank AG.(3)
To acquire 40% interest held by minority partner
10/00 $ 19.4 $
$
21.0
1.4
2.8 common stock shares issued
Cash
Fiscal 2000 Acquisitions:
Canopy Acquisition Corporation
(formerly, Electronic Investing Corporation) Providerof
individual securities portfolios
8/00 $ 5.5 $
$
8.2
0.9
0.2 shares of common stock issued in fiscal 2000
0.3 shares of common stock issued in fiscal 2001
Cash
E*TRADE Access, Inc.
(formerly Card Capture Services, Inc.) Independentnetwork of
ATMs
5/00 $ 73.2 $
$
$
70.5
16.9
5.1
3.1 shares of common stock issued
1.0 employee stock options assumed
Cash
Fairvest Securities Corporation
Provider of Canadian corporate governance
and related services
5/00 $ 0.6 $
$
0.5
0.5
Cash
0.1 shares exchangeable into E*TRADE common stock
2003. EDGAR Online, Inc.