eToro, a leading online brokerage platform, is set to complete the acquisition of fintech startup Gatsby following approval by US regulator The Financial Industry Regulatory Authority (FINRA), TechCrunch reported on Wednesday.
According to the publication, the social investing giant will acquire the US-based platform for $50 million in a deal that will be settled in cash and common stock.
The eToro-Gatsby deal was first mooted in December 2021, with eToro eyeing the FINRA approval as part of a larger goal of expanding into the US market.
The acquisition adds to eToro’s other major deals since 2019, with Gatsby now joining the growing brand that counts deals for investment tracker Delta, blockchain platform eToro Labs (formerly Firmo), and UK-based e-money firm Marq Millions Ltd.
Gatsby, founded in 2018, is key to eToro’s expansion efforts with its commission-free trading for options and stocks.
The takeover is thus crucial in the battle to attract customers from a growing group of younger investors. Robinhood, one of the leading trading platforms in the zero-commission battle, is also one of eToro’s main competitors with a footprint in the US market.