CHICAGO--(BUSINESS WIRE)--optionsXpress Holdings, Inc. (NasdaqGS:OXPS) announced today that it has signed a definitive agreement to acquire Optionetics, Inc. in an all cash transaction for approximately $20 million, plus additional cash consideration based on future performance. The transaction is expected to close in the next few weeks. Optionetics, based in Redwood City, California and Sydney, Australia, is a leading provider of investment education services, including live seminars, proprietary software analytics, online and offline educational products and individual coaching to over 40,000 potential investors annually in 12 countries.
“The acquisition of Optionetics is an exciting event for both our customers and our shareholders. Over the last decade Optionetics has developed a wealth of educational content and capabilities establishing themselves as a leader in investor education. With its focus on derivative products, we believe Optionetics will help us further one of our stated objectives of providing education to our customers with the goal of helping them be more successful in their investing,” said David Fisher, Chief Executive Officer of optionsXpress. “In addition, Optionetics interacts with tens of thousands of potential self-directed investors who use, or are thinking about using, derivatives as part of their investment strategy each year. Every one of these investors is a potential brokerage customer of optionsXpress.”
Optionetics was founded in 1995 by its current Chief Executive Officer, Richard Cawood and world-renowned options educator George Fontanills. Optionetics offers both educational seminars and products under several brands including Optionetics and Safety in the Markets.
“We are excited to be joining the optionsXpress family. We have successfully built and operated an independent investor education company for 14 years. Partnering with a leading brokerage where our students can implement their strategies is extremely compelling,” commented Mr. Cawood. “We are confident that optionsXpress, with its commitment to customers and investor education is a perfect fit for Optionetics students.”
Optionetics shareholders will receive $20 million of cash consideration plus additional consideration based upon future performance, which, based on the mid-point of the performance targets, would amount to a total of $17.5 million in cash over five years. Mr. Cawood and Mr. Fontanills, along with three other key senior managers have agreed to multi-year employment or consulting agreements. optionsXpress expects the transaction to have no significant impact on 2009 earnings per share. On a standalone basis, we would expect Optionetics to generate approximately $45 to $55 million in revenue and between a pretax loss of $2 million and pretax income of $2 million.
About optionsXpress Holdings, Inc.
optionsXpress Holdings, Inc., a pioneer in equity options and futures trading, offers an innovative suite of online brokerage services for investor education, strategy evaluation and trade execution. optionsXpress Holdings subsidiaries include optionsXpress, Inc., a retail online brokerage specializing in options and futures, and brokersXpress, LLC, an online trading and reporting platform for independent investment professionals and Open E Cry, LLC, an innovative futures broker offering direct access futures trading for high volume commodities and futures traders through its proprietary software platform. Barron's named optionsXpress the number one online broker for four years in a row (2003 to 2006) and Kiplinger's Personal Finance named it the top discount broker in 2006.
More information can be found in the Investor Relations section of optionsXpress' website at http://www.optionsxpress.com/investor.
This press release may contain forward-looking statements. These statements relate to future events or our future financial performance and involve known and unknown risks. We urge you to carefully consider these risks in evaluating the information in this press release, including risks related to general economic conditions, regulatory developments, the competitive landscape, the volume of securities trading generally or by our customers specifically and other risks described in our filings with the Securities and Exchange Commission. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these terms or other comparable terminology. These statements are only predictions. Actual events or results may differ materially. The forward-looking statements made in this press release relate only to events as of the date of this release. We undertake no ongoing obligation to update these statements.