eToro, a central Israel headquartered financial company revealed plans to obtain fintech startup Gatsby, a commission-free options and stock trading firm.
In the agreement, the two companies settled the transfer of services with $50 million, to be channeled in cash and common stock. This is according to the report released by TechCrunch.
Jeff Myers and Ryan Belanger-Saleh are the key co-founders of Gatsby with a vision to embrace and attract younger retail investors into the business.
The CEO and Co-Founder of eToro, Yon Assia, said that the acquisition will allow its users in the United States to experience a functional trading network with access to a safe and simple way to trade options.
eToro also extended, “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.”
In addition, the acquisition is subject to the customary closing conditions including regulatory approvals. eToro fully acquired full legal approvals to take over the acquisition.
As soon as the acquisition s completed, Gatsby’s executives among other stakeholders will be 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, Gatsby Co-CEO, explained.
“In terms of product and culture, it’s a great fit and we’re excited about the next chapter in our shared future,” Belanger-Saleh added.
The Declined Deal
eToro called off the discussion disclosed before regarding the intentions to merge with Corp. V. The termination of the acquisition was catalyzed by the two company’s failure to meet the required conditions.
The announcement comes four months after the merge discussion in March 2022.
Among others, the social investment and trading network missed the June 30 deadline 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.