TLDR
-
eToro stock drops as the company unveils a deal to acquire TradeZero for $231M.
-
TradeZero gives eToro a faster route to expand its US brokerage operations.
-
TradeZero generated about $80M in revenue while posting a strong 81% gross margin.
-
eToro expects the TradeZero acquisition to boost adjusted EPS after closing.
-
The deal could close in the first half of 2027, subject to regulatory approvals.
eToro Group (ETOR) stock fell 8.89% to $30.98 after the company announced plans to acquire TradeZero. The transaction could reach $231 million and would expand eToro’s brokerage presence across North America. ETOR shares moved near session lows as the market absorbed the acquisition terms.
eToro Targets Wider US Reach With TradeZero Deal
eToro plans to acquire TradeZero to strengthen its position in the United States brokerage market. TradeZero serves active traders through proprietary platforms and established broker-dealer infrastructure. The company also operates across the United States, Canada, and international markets.
TradeZero launched in 2015 and built its business around active trading tools and brokerage services. eToro expects the combination to speed product development and expand services across both platforms. The deal also gives eToro a faster route to add US trading capabilities.
The acquisition brings TradeZero’s technology, brokerage systems, and trading community into eToro’s global platform. eToro plans to use those assets to launch more products for American customers. TradeZero’s Canadian operations also give eToro another path for regional growth.
Deal Could Reach $231 Million in Cash and Shares
eToro agreed to pay up to $231 million for TradeZero, subject to customary adjustments. The consideration includes cash and up to 2.5 million newly issued eToro Class A common shares. That structure links part of the purchase price to eToro’s publicly traded equity.
TradeZero generated about $80 million in revenue during the latest twelve-month period. The brokerage also reported an 81% gross margin in figures released with the agreement. Those financial results add an established revenue stream to eToro’s expanding brokerage operations.
eToro expects the transaction to increase adjusted earnings per share during the first year after completion. The company views TradeZero as a complementary addition to its financial profile. Final consideration will depend on agreed adjustments and the value of issued shares.
TradeZero Acquisition Extends eToro Expansion Strategy
eToro expects to complete the acquisition during the first half of 2027. Before closing, both companies must meet customary conditions and secure required regulatory approvals. The timeline gives eToro time to prepare TradeZero’s integration into its broader operations.
The transaction also extends eToro’s effort to build a stronger United States brokerage business. TradeZero adds infrastructure designed for active traders alongside specialized trading technology. Its established operations could help eToro introduce additional services across the region.
Jefferies advised eToro, while Simpson Thacher and Bartlett serves as lead deal counsel. J.P. Morgan Securities advised TradeZero, while Choate Hall and Stewart serves as lead counsel. The transaction marks another step in eToro’s expansion across major brokerage markets.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
