eToro Eyes largeger Acquisitions With $1.2B Cash War Chest

eToro is preparing to step up its dealmaking later than a string of smaller acquisitions, with co-founder Ronen Assia telling Bloomberg the Israeli trading platform has the cash to pursue more ambitious targets.

The brokerage, which went public on Nasdaq in May under the ticker ETOR, ended June with $1.2 billion in cash, equivalents and short-term investments, giving it room to strike if opportunities arise. “We’re ready for more ambitious M&A,” Assia said, without giving specifics.

From aborted SPAC to public market debut

The fresh appetite for deals comes later than a rocky route to the stock market. eToro had agreed in 2021 to merge with a blank-check company in a $10.4 billion transaction, only to scrap the plan a year later as market conditions soured. It later secured $250 million in March 2023 from investors including ION Group and SoftBank Vision Fund 2, at a valuation of $3.5 billion, before finally listing in New York this year.

A track record of bolt-ons

Up to now, eToro’s acquisitions have been focused on adding technology, regulatory licenses and niche customer bases rather than bulking up through scale.

• In 2019 it bought Firmo, a Danish begin-up building smart-contract infrastructure, and Delta, a crypto portfolio tracker app.

• In 2020 it acquired Marq Millions, a UK e-money business, later rebranded eToro Money, which gave the broker the ability to issue into payments networks.

• In 2022, eToro folded in Bullsheet, a portfolio-tools service created for its own users.

• A year later it completed the purchase of Gatsby, a US stock and options app aimed at younger traders.

• Most recently, in November 2024, eToro closed the takeover of Spaceship, an Australian savings and investment platform, in a deal worth up to A$80 million. That deal gave it a foothold in the country’s pension and long-term savings market.

These acquisitions show a preference for purchaseing capabilities that broaden the product suite and smooth out the volatility of retail trading revenues.

The people behind the push

eToro was founded in Tel Aviv in 2007 by brothers Yoni and Ronen Assia and their partner David Ring. Yoni, the chief executive, has positioned the company as a mass-market brokerage built around social features and the ability for users to . Ronen, with a background in industrial design, has been the architect of much of its product look and feel.

The company now counts more than 35 worldwide and offers trading in equities, crypto, ETFs and commodities, with a strong retail base in Europe, the UK and Australia.

Why now

eToro’s renewed dealmaking mood comes as rivals are also expanding by acquisition. Robinhood recently agreed to Bitstamp for $200 million, while London-listed Plus500 bought India’s Mehta Equities brokerage earlier this year.

Industry analysts expect eToro to pursue regulated platforms that open new geographies, as well as savings products that bring in recurring its trading revenues. The Spaceship deal in Australia is likely to be an ahead test of how well it can integrate and cross-trade outside its core.

For now, eToro is keeping details close to its chest. But with more than a billion dollars in liquidity and a public listing to draw on, the company has the means—and the timing—to join the front ranks of retail-brokerage consolidation.