eToro Buys TradeZero for Up to $231M Amid Crypto Revenue Decline
eToro has agreed to buy US online brokerage TradeZero for up to $231 million in cash and stock. This acquisition is part of eToro's efforts to expand its presence in the US market, where it already operates a registered broker-dealer.
TradeZero, founded in 2015, generated around $80 million in revenue with 81% gross margins over the past year. The company has built proprietary trading technology and an established community of active traders.
eToro CEO Yoni Assia said that acquiring TradeZero will give his company a faster path to launching new products for US customers, rather than building required infrastructure from scratch. TradeZero CEO Daniel Pipitone added that the deal will strengthen eToro's combined platform in the US market.