eToro, an Israeli multi-asset trading platform, has shared its plans to acquire fintech startup Gatsby, a commission-free options, and stock trading company. This year, eToro expanded into new opportunities in online trading, financial technology, digital assets, blockchain, and payments.
Gatsby was founded in 2018 by Jeff Myers and Ryan Belanger-Saleh and is aimed at young retail investors.
The deal, which will be completed in cash and common stock, is worth $50 million.
Yoni Assia, CEO, and co-founder of eToro said in a statement that the deal will allow the marketplace to provide its users in the United States with access to a safe and easy way to trade options.
eToro also added that the deal is a key step in expanding the company’s offerings to U.S. clients, which currently focuses on Crypto and equities. The integration will support eToro’s goal of providing multi-asset investment instruments to US users as it continues to expand its social investment network through education, innovation, and providing easy assets and instruments people need.
Learn how to trade stocks, Cryptocurrencies, currency pairs, and popular instruments with Top Forex broker eToro
The acquisition is also subject to standard closing conditions such as regulatory approval.
However, Tech Crunch reports that eToro has received approval from the Financial Industry Regulatory Authority to proceed with the acquisition.
Following the closing of the deal, Davis Gaines, president, and co-founder of Gatsby, Peter Quinn, co-founder, and chief operating officer of the startup, and Matt Morris, head of products, will also become part of eToro.
“We’ve always been huge fans of the social aspects of eToro. They’ve really been the pioneers of social investing, and we’ve always thought of them as the cool older sibling we’d love to hang out with,” Ryan Belanger-Saleh, the Co-CEO of Gatsby, explained.
“In terms of product and culture, it’s a great fit and we’re really excited about the next chapter in our shared future,” Belanger-Saleh added.
Also, eToro recently announced that it has terminated its agreement with FinTech Acquisition Corp. V under the merger plan.
Both parties failed to meet the conditions listed for the merger when the plan was first announced in March 2021.
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