Stockbroking platform eToro Group Ltd has accepted a deal to acquire superannuation fintech Spaceship, a company backed by Atlassian (NASDAQ:TEAM) CEO Mike Cannon-Brookes that has come under some scrutiny from ASIC in recent months.
The deal, which could be worth up to $80 million in stock once eToro makes its public listing, is intended to strengthen eToro’s saving sector position, offering greater exposure to passive, long-term investments.
The stockbroking company points to Spaceship’s more than 200,000 clients and more than $1.5 billion in funds under management since launching in 2017 as significant value-adds to its own business offerings.
Spaceship was briefly banned from accepting new customers by ASIC over concerns it was offering its products to unsuitable investors.
eToro came under similar scrutiny not long after, with ASIC alleging its target market for certain products was too broad for their risk profile.
Spaceship CEO Andrew Moore and eToro Australian managing director Robert Francis were unconcerned, telling the Australian Financial Review that they were historical issues with ASIC and the company had strengthened its compliance.
Accessible investing options
“Spaceship and eToro share the goal of making investing accessible for everyone,” eToro CEO and co-founder Yoni Assia said.
“Like us, they look to the future, and we are excited to welcome their team and their clients into the eToro family.
“With almost two decades’ of experience building, innovating and serving clients around the world, I believe that together eToro and Spaceship can take our offering for Australian users to the next level.
“We are expanding our long-term savings and investing proposition for our users globally and this acquisition is a key step on this journey.
“Our mission is to give people the tools and knowledge they need to grow their wealth. To do this we must continue to build out our offering, so that we can support people throughout their investing lives.
“We hope that this deal will be the first of many in the long-term savings and investing space as we continue to build out our localised product offering in our key markets.”
eToro intends to eventually give Spaceship clients access to its own offerings, including investment tools and educational resources, while eToro users will be offered access to Spaceship’s superannuation and managed funds.