Brown & Company to acquire online broker Dreyfus Brokerage Services
Boston, December 21 2001 - Brown & Company, the online brokerage unit of J.P. Morgan Chase & Co. (NYSE: JPM), has signed a definitive agreement to acquire Dreyfus Brokerage Services, Inc. (DBS), the online trading business of Mellon Financial Corporation (NYSE: MEL). The acquisition includes approximately 75,000 accounts and approximately $6 billion of assets in safekeeping. Terms of the all-cash deal, expected to close in early 2002 pending necessary regulatory approvals, were not disclosed.
The proposed acquisition will supplement Brown & Company's current assets and customer base and enhance Brown & Company's position in the online brokerage arena.
Brown & Company and DBS will work together to ensure a seamless transition for customers, who can expect continued quality service and competitive trading commissions.
"This acquisition will increase our market share in the active, experienced investor marketplace," said Elizabeth J. Fisher, president and chief executive officer of Brown & Company. "We're committed to growing this business and look forward to welcoming Dreyfus investors to what Brown & Company investors have always valued: $5 trades and noted outstanding customer service."
"This transaction is part of the continued sharpening of our strategic focus," said Stephen E. Canter, Mellon vice chairman and chairman and chief executive officer of The Dreyfus Corporation. "Since DBS and Brown & Company are both major players in the active trader end of the online brokerage business, this agreement is a natural fit. The combined organization certainly will have the necessary resources to ensure a continuity of high quality service."