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Morgan Stanley

Investment BankingFounded 1935
Reviewed by Swet Parvadiya
Company data updated: October 2026

Acquisitions

Morgan Stanley Acquisitions

3

Major Deals Covered

$20.0B

Disclosed Deal Value

What are Morgan Stanley's biggest acquisitions?

Morgan Stanley's largest disclosed acquisition here is E*TRADE for $13B in 2020. This page covers 3 major deals from 2009 to 2021, each with its price where disclosed and the reason behind it.

Major deals covered
3
Largest deal
E*TRADE ($13B)
First deal
2009
Most recent
2021
CompanyYearPricePurpose
E*TRADE2020$13.0BMorgan Stanley bought E*TRADE in an all-stock deal valued at about $13B, completed in October 2020, to add self-directed investors and stock-plan clients.
Eaton Vance2021$7.0BMorgan Stanley acquired Eaton Vance for about $7B, completed in March 2021, adding Parametric, Calvert, and Atlanta Capital.
Smith Barney2009UndisclosedIn 2009 Morgan Stanley formed the Morgan Stanley Smith Barney joint venture with Citigroup, taking a 51% stake, and bought out Citi's remaining interest by 2013.
What companies has Morgan Stanley bought?
Major acquisitions by Morgan Stanley documented here include E*TRADE (2020), Eaton Vance (2021) and Smith Barney (2009).
What is Morgan Stanley's most recent acquisition?
The most recent Morgan Stanley acquisition documented here is Eaton Vance, in 2021, for $7B.

Eaton Vance

2021

$7.0B

Why

Morgan Stanley acquired Eaton Vance for about $7B, completed in March 2021, adding Parametric, Calvert, and Atlanta Capital.

Impact

This effective acquisition provided Morgan Stanley with scale and specialized, lucrative capabilities in ESG investing (via Calvert) and customized, tax-optimized portfolio construction (via Parametric).

Outcome

Eaton Vance generated fee revenue, heavily solidifying Morgan Stanley's status as a top-tier asset manager and providing its army of wealth advisors with sophisticated, high-margin investment products to sell to wealthy clients.

Source →

E*TRADE

2020

$13.0B

Why

Morgan Stanley bought E*TRADE in an all-stock deal valued at about $13B, completed in October 2020, to add self-directed investors and stock-plan clients.

Impact

This acquisition transformed Morgan Stanley's historically top, ultra-high-net-worth client base. It provided scale, directly adding millions of new retail accounts and a lucrative corporate stock plan administration business.

Outcome

E*TRADE created a powerful, entrenched 'funnel' ecosystem. As younger employees receive corporate stock and rapidly accumulate wealth, Morgan Stanley smoothly transitions them from basic E*TRADE accounts into the lucrative, full-service wealth management advisory division.

Source →

Smith Barney

2009

Why

In 2009 Morgan Stanley formed the Morgan Stanley Smith Barney joint venture with Citigroup, taking a 51% stake, and bought out Citi's remaining interest by 2013.

Impact

The deal made Morgan Stanley one of the largest US retail wealth managers.

Outcome

Wealth management became the firm's largest stable revenue source.

Source →

Morgan Stanley's Growth & Acquisition Strategy

The strategy is to grow client assets across the wealth and investment management franchise, use Morgan Stanley at Work and E*TRADE as feeders into advisor-led accounts, and keep share in equities, advisory, and underwriting. The firm also deploys AI tools for advisors, including assistants built with OpenAI.

How Morgan Stanley Makes Money

Morgan Stanley reports three segments. Institutional Securities earns advisory and underwriting fees, equity and fixed-income trading revenue, prime brokerage financing, and corporate lending income. Wealth Management earns asset-based advisory fees, brokerage commissions, and net interest income on client deposits and loans across its advisor network, E*TRADE, and Morgan Stanley at Work. Investment Management earns management and performance fees on public and private-market strategies, including Eaton Vance, Parametric, and Calvert.

Morgan Stanley Acquisitions FAQ

What were the most transformative acquisitions in Morgan Stanley's modern history?

Morgan Stanley's most transformative modern acquisitions were the phased acquisition of Smith Barney from Citigroup ($13.5B, 2009 to 2013), E*TRADE Financial ($13B, 2020), Eaton Vance ($7B, 2021), and Solium Capital (Shareworks, $900M, 2019).

How did the acquisition of E*TRADE in 2020 transform Morgan Stanley's retail reach?

The $13 billion all-stock acquisition of E*TRADE added over 5 million retail accounts, $360 billion in client assets, $56 billion in low-cost deposits, and a premier digital trading platform that complemented advisor-led wealth channels.

Why did Morgan Stanley acquire Eaton Vance in 2021 and what assets did it bring?

Acquired for $7 billion, Eaton Vance added $500 billion+ in asset management AUM and brought market-leading specialty franchises, including Parametric (custom direct indexing), Calvert (responsible ESG investing), and Atlanta Capital.

What was the significance of the 1997 merger between Morgan Stanley and Dean Witter Discover?

The 1997 $10 billion merger between Morgan Stanley and Dean Witter Reynolds combined top wholesale institutional investment banking with a mass-market retail brokerage and the Discover Card franchise.

How did the acquisition of Solium Capital (Shareworks) accelerate workplace wealth management?

Acquired in 2019 for $900 million, Solium Capital provided the enterprise software engine behind 'Morgan Stanley at Work', managing equity compensation plans for over 3,000 corporate clients globally.

How did the phased acquisition of Smith Barney between 2009 and 2013 reshape Morgan Stanley?

Buying Citigroup's Smith Barney brokerage transformed Morgan Stanley from a Wall Street investment bank vulnerable to capital markets into the world's largest wealth management network with over 15,000 financial advisors.

Did Morgan Stanley spin off any non-core acquisitions or divisions over time?

Yes, Morgan Stanley spun off the Discover Card business in 2007 (Discover Financial Services) and sold its physical oil commodities merchant trading business to Castleton Commodities in 2015 to focus on core wealth and institutional banking.

What strategic criteria does Morgan Stanley use when evaluating future corporate acquisitions?

Morgan Stanley evaluates acquisitions based on recurring fee revenue enhancement, client asset scale, technology IP additions, deposit funding synergy, and strategic alignment with wealth and asset management growth.

Why was the $13 billion acquisition of E*TRADE in 2020 so transformative?

In 2020, Morgan Stanley acquired online brokerage pioneer E*TRADE for $13 billion. The deal added over 5 million retail self-directed accounts, $360 billion in low-cost retail deposits, and the market-leading Corporate Services division that administers stock plans for thousands of enterprise clients, perfectly feeding Morgan Stanley's wealth management pipeline.

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.