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

The Gatsby crew, including co-founders, was acquired by Israel-based eToro.

eToro has canceled its merger with FinTech Acquisition Corp. V.

eToro, an Israeli global social investment and trading network, has announced intentions to purchase a fintech business called Gatsby, as well as commission-free options and a stock trading firm.

Jeff Myers and Ryan Belanger-Saleh co-founded Gatsby in 2018 and it is aimed at younger retail investors.

According to TechCrunch, the acquisition is worth $50 million in cash and common shares.

Yoni Assia, CEO and Co-Founder of eToro, said in a statement that the purchase would allow the trading network to give its members in the United States “access to a secure and easy method to trade options.”

“This purchase is a major step in the continued expansion of eToro's service to US consumers, which is now concentrated on crypto and stocks,” eToro said.

“Gatsby's integration will help eToro achieve its aim of delivering multi-asset investment tools to US customers as it expands its social investing network via education, innovation, and giving easy access to the assets and tools people desire.”

According to the statement, the transaction is still subject to normal closing conditions, such as regulatory clearances.

According to Tech Crunch, eToro has acquired clearance from the Financial Industry Regulatory Authority to proceed with the purchase.

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

“We've always been big supporters of eToro's social components.” “They've truly been the pioneers of social investment, and we've always regarded them as the cool older sibling we'd want to hang out with,” commented Gatsby Co-CEO Ryan Belanger-Saleh.

“It's a perfect match in terms of product and culture, and we're enthusiastic about the next chapter in our shared future,” Belanger-Saleh said.

Deal Shelved

Meanwhile, eToro just announced a mutual agreement with FinTech Acquisition Corp. V to dissolve their previously disclosed agreement and merger proposal.

Both parties were unable to achieve the merger criteria when the idea was initially disclosed in March 2021.

Among other things, the social investing and trading network missed the June 30 deal-closing date.

“In the present market situation,” Assia added, “we think that it is in the best interests of eToro to cancel the merger agreement and continue to function as a private firm for the time being.”

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