Transaction

• In May 2009, Optionetics was acquired by optionsXpress (NasdaqGS: OXPS).
• Optionetics shareholders will receive $20 million of cash 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. Seven Hills acted as the exclusive financial advisor to Optionetics in this transaction.

Company

• 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 investors annually in 12 countries. Optionetics offers both educational seminars and products under several brands including Optionetics and Safety in the Markets.
• 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 is headquartered in Chicago, IL.

Result

• Liquidity for Optionetics shareholders and structured transaction to maximize potential consideration in light of current market conditions.
• Acquisition provides optionsXpress with expanded educational content and services to offer its current customers. Optionetics also provides access to tens of thousands of highly educated and active brokerage customers per year.