eToro, an Israeli multinational social investment and trading network, has announced its plans to acquire fintech startup Gatsby, a commission-free options and stock trading firm.
Gatsby was co-founded in 2018 by Jeff Myers and Ryan Belanger-Saleh and is targeted at younger retail investors.
TechCrunch reports that the deal, to be in cash and common stock, is worth $50 million.
Yoni Assia, the CEO and Co-Founder of eToro, said in a statement that the acquisition will enable the trading network to provide its users in the United States “with access to a safe and simple way to trade options.”
eToro also explained: “This acquisition is a key step in the ongoing diversification of eToro’s offering to US users, which is currently focused on crypto and stocks.
“Gatsby’s integration will support eToro’s goal of providing multi-asset investment tools to US users as it continues to grow its social investing network through education, innovation and enabling simple access to the assets and tools people want.”
According to the statement, the acquisition is still subject to customary closing conditions such as regulatory approvals.
However, Tech Crunch reports that eToro has received approval from the Financial Industry Regulatory Authority, to carry out the acquisition.
However, once the acquisition is completed, Davis Gaynes, the President and Co-Founder of Gatsby, Peter Quinn, the startup’s Co-Founder and Chief Operating Officer, and Matt Morris, the Head of Product, among others, will 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.
Shelved Deal
Meanwhile, eToro recently announced that it has entered into a mutual agreement with FinTech Acquisition Corp. V to terminate their announced agreement and merger plan.
Both parties were unable to meet the conditions listed for the merger when the plan was first announced in March 2021.
Among others, the social investment and trading network missed the deadline of June 30 to seal the deal.
“In the current market environment, we believe that it is in the best interests of eToro to terminate the merger agreement and continue, for now, to operate as a private company,” Assia had explained.
