EToro will acquire Gatsby for $50 million to expand option trading in the United States

EToro, an Israeli global social investing and trading network, has announced its intention to purchase commission-free options and stock trading provider Gatsby, a fintech startup. Jeff Myers and Ryan Belanger-Saleh co-founded Gatsby in 2018 with a focus on younger retail investors.

TechCrunch says that the purchase is valued at $50 million in cash and ordinary shares.

Yoni Assia, CEO and Co-Founder of eToro, said in a statement that the acquisition will allow the trading network to offer its users in the United States "access to a safe and easy way to trade options."

EToro also explained: "This acquisition is a crucial step in the continuous diversification of eToro's US service, which is now centered on crypto and stocks.

"The integration of Gatsby will help eToro's mission of providing multi-asset investment tools to US consumers as it continues to expand its social investing network through education, innovation, and enabling simple access to the assets and tools people want."

The transaction is subject to standard closing conditions, such as regulatory approvals, according to the announcement. However, Tech Crunch claims that the Financial Industry Regulatory Authority has authorized eToro to complete the transaction.

Davis Gaynes, President and Co-Founder of Gatsby, Peter Quinn, Co-Founder and Chief Operating Officer of the startup, and Matt Morris, Head of Product, among others, will join eToro once the transaction is finalized.

"We've always been major supporters of eToro's social features. Co-CEO of Gatsby Ryan Belanger-Saleh remarked, "We've always looked of them as the cool older sibling we'd love to hang out with because they were the pioneers of social investing."

Belanger-Saleh added, "In terms of product and culture, it's a wonderful fit, and we're incredibly thrilled about the next chapter of our shared future."

EToro has recently announced that it has reached an agreement with FinTech Acquisition Corp. V to terminate their previously disclosed agreement and merger plans. When the merger plan was first disclosed in March 2021, neither party was able to meet the merger's prerequisites. The social investing and trading network, among others, missed the June 30 deadline to close the agreement.

Assia had noted, "given the current market situation, we think it is in eToro's best interests to terminate the merger deal and continue operating as a private company."