eToro Acquires TradeZero for $231M Amid Crypto Revenue Slump

eToro has agreed to purchase TradeZero, a US-focused online brokerage for active traders, for up to $231 million in cash plus up to 2.5 million newly issued Class A shares.

The deal is eToro's third acquisition this year and will give the company regulated brokerage plumbing in two markets it wants to grow in.

TradeZero generated roughly $80 million in revenue in the twelve months ended June 30, with 81% gross margins in the second quarter. The purchase should add to adjusted earnings per share in eToro's first year after completion.

eToro's crypto flow has seen a sharp contraction, with revenue from cryptoassets falling to $1.35 billion in the second quarter from $1.91 billion a year earlier.