Stock Watch: E*Trade Falls After ATM Acquisition

E*Trade Group, Inc. (Nasdaq: ETRD) was down 1 5/8 to 24 7/8 in early trading Monday after the online brokerage announced plans to acquire Card Capture Services, Inc., the largest independent network of centrally managed automated teller (ATM) machines in the country. Terms of the definitive agreement were not disclosed.

E*Trade said the acquisition will enable it to offer a "nationwide branded electronic physical presence to conduct an expanding array of financial transactions," as it will use the ATMs to create a network of financial services kiosks to offer E*Trade products.

The ATMs currently process more than 3.1 million transactions a month, and are located in hotels, malls, grocery and convenience stores, gas stations and other locations, E*Trade said.