eToro, an online brokering service, is acquiring options trading platform Gatsby as part of the firm's expansion plan to draw in younger, US-based investors.
The deal is valued at $50 million, in cash and common stock, an eToro spokesperson confirmed. The acquisition is part of the firm's ongoing diversification efforts in the US.
Gatsby was founded in 2018 by co-founders Jeff Myers and Ryan Belanger-Saleh. The app offers commission-free options and stock trading for younger demographics.
“We've always been huge fans of the social aspects of eToro,” Belanger-Saleh said in the statement. “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.”
The Gatsby team will join eToro following the acquisition, including president Davis Gaynes, chief operating officer Peter Quinn, chief technology officer Jeffrey Kleiss and head of product Matt Morris.
“We are incredibly excited to welcome the Gatsby team to the eToro family,” said eToro CEO and co-founder Yoni Assia. “We have a shared mission of empowering investors through simple, transparent investing tools.”
Gatsby previously raised $10 million during a Series A funding round in March 2021. The firm's backers included Barclays Bank, Techstar Ventures and Beta Bridge Capital.
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