Israeli online trading platform eToro has announced that it has signed a definitive agreement to acquire New York-based options trading platform Gatsby. No financial details were disclosed but “TechCrunch” reported that eToro is paying $50 million in a tech and common stock deal. The two companies are rivals but Gatsby targets younger investors.
eToro CEO and cofounder Yoni Assia said, “We’ve seen a seismic shift in the balance of power away from traditional finance institutions towards the retail investor. The internet has democratized financial information and a sea change has taken place, empowering more everyday investors – particularly Gen Z and Millennials – to trade and invest. These retail investors are looking for opportunities to generate returns in today’s bear market.”
He added, “Against this backdrop, we are incredibly excited to welcome the Gatsby team to the eToro family. We have a shared mission of empowering investors through simple, transparent investing tools. Scaling our US business is a strategic focus for eToro and through Gatsby we can provide US users with access to a safe and simple way to trade options, which we know are particularly attractive in challenging markets.”
Gatsby is a commission-free options and stock trading app focused on a younger demographic which was founded in 2018 by co-CEOs Jeff Myers and Ryan Belanger-Saleh in 2018. They and their senior team will be joining eToro.
Belanger-Saleh said, “We came up with the idea of Gatsby while we were in London. We were convinced there was an opportunity for us to demystify markets and provide an options platform focused on the needs of a new generation of US traders. 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 with! In terms of product and culture, it’s a great fit and we’re really excited about the next chapter in our shared future.”
eToro said that the acquisition is a key step in the ongoing diversification of its 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.
Published by Globes, Israel business news – en.globes.co.il – on August 17, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
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