eToro has announced a major acquisition with fintech startup Gatsby for $50 million in the form of stocks and cash.
Israeli multinational social trading and investment network eToro announced its plans to acquire fintech startup Gatsby, a commission-free stock and options trading company. eToro has received approval from the Financial Industry Regulatory Authority, to make the acquisition. The merger deal reportedly took the form of $50 million in stocks and cash. Founded in 2018 by Jeff Myers and Ryan Belanger-Saleh, it has a target market of young retail investors.
"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, Gatsby Co-CEO, 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." Yoni Assia, CEO and Co-Founder of eToro said the acquisition will enable secure and simple access to trading options for clients in the United States.
The online brokerage platform also explained that the acquisition is a key step in the continued diversification of eToro's offering to US users, which is currently focused on crypto and stocks.
The Gatsby integration will support eToro broker's goals as it continues to grow its social investment network through education, innovation and enabling easy access to the assets and tools people want.
Following the acquisition, several Gatsby executives will become part of eToro, including Gatsby President and Co-Founder Davis Gaynes, Co-Founder and Chief Operating Officer Peter Quinn, as well as Head of Product Matt Morris.