E*Trade Financial Corp. on Monday said it had agreed to buy Aperture New Holdings Inc., the parent of online broker OptionsHouse LLC, for $725 million in cash to increase its derivatives capabilities.

E*Trade's shares recently declined 2.4% to $25.18 and are down 15% so far this year.

Chicago-based OptionsHouse has 154,000 customer accounts with $3.6 billion in customer assets. It made about $104 million in revenue over the past 12 months.

E*Trade Chief Executive Paul Idzik said the deal will allow the delivery of enhanced options capabilities to the company's customers and give E*Trade access to OptionsHouse's active customer base.

"We believe options are an important component of an investor's arsenal, and this deal will intensify our derivatives firepower," said Mr. Idzik.

The company expects the deal to be neutral to earnings next year and add to results in 2018.

E*Trade plans to issue up to $400 million in preferred stock to help finance the deal, which is expected to close in the fourth quarter.

E*Trade reported last week that its second-quarter revenue rose 10% as trading picked up and its allowance for loan losses shrunk, though the pace of the online broker's new account openings slowed. The results beat Wall Street expectations.

Write to Brittney Laryea at brittney.laryea@wsj.com

(END) Dow Jones Newswires

July 25, 2016 11:45 ET (15:45 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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