Currency Revolution Series: What Does M&A Deal of eToro and Delta Mean For?

eToro, which is the renowned multi-asset trading platform, has recently made an announcement of its acquisition deal with ‘Delta’, which is a crypto portfolio management app. This acquisition deal has been the second deal for eToro for this year, which is part the company’s intended expansion strategy.

This year, back in March, eToro acquired a start-up who are in smart contract business.

The prime objective of an acquisition deal is self-evidently expansion of acquirer’s assets, market share and their revenue for a an organizational growth, innovation and thereby, achieving shareholder’s wealth enhancement perspectives. M&A veterans reckon that this is feasible by adding a competitive advantage.

This objective was explicitly observed in this deal as the Co-founder and CEO of eToro, Yoni Assia, added his commentaries on the news in a press release: "we are excited to announce that Delta will become part of the eToro Group. This is our second acquisition this year and reflects our commitment to continued “growth and innovation”. When we started eToro our goal was to disrupt the world of trading. We wanted to change the way people think about trading and investing, ultimately reducing dependency on traditional financial institutions and make trading and investing more transparent and fun. This mission remains our guiding light and we will continue to evolve both organically and by acquisition in order to bring our customers the very best experience."

While Delta is a crypto portfolio tracker app with over 6,000 crypto-assets available from more than 180 exchanges. It provides investors with a range of tools to track and analyse their crypto portfolios. Delta has been downloaded by over 1.5 million users till date and has hundreds of thousands of active monthly users. The app is known for its superior quality which is reflected in extremely popular users reviews (4.8 average on iOS and 4.6 on Android) and its award winning user interface (2018 Webby Judges Award Winner for best mobile app UI/UX).

The CEO of Delta, Nicolas Van Hoorde, also seemed highly optimistic while adding his stances about this acquisition deal, that the strategic movement has made sense both for Delta and for eToro and that their users could benefit from the merging of their services. 

He stated, “Yesterday marked an important day for Delta. As you might have picked up already, we’re super proud to share that the company behind Delta has been fully acquired by eToro, one of the biggest fintech companies in the world.

Overall, we could make out from the statements from both executives that there are strong synergies between the two companies and many shared values, in particular, the focus on community and continuous growth and innovation.