Spaceship Acquisition: Key Details, Impact, and What Comes Next

eToro's acquisition of the Australian investing app Spaceship, valued at up to $80 million AUD, marks a significant step in the financial industry. This strategic move aims to enhance eToro's long-term savings offerings and expand its presence in the Australian market. By integrating Spaceship's superannuation and managed investment portfolios, eToro is set to provide a more comprehensive investment platform for its users.

What Is Spaceship?

Founded in 2016, Spaceship offers a range of investment products including Spaceship Voyager, Spaceship Super, and US Investing. Its unique selling points include no minimum investment requirement for Spaceship Voyager, ease of use through a mobile app, and the ability to invest in fractional shares. Spaceship Super has been recognized as Money Magazine’s Best Value Super Fund for Young People in 2022, highlighting its competitive performance and forward-thinking investment options.

Who Acquired Spaceship?

eToro is a leading global trading and investment platform, recognized for its innovative features like social trading and CopyTrader™. It offers access to over 7,000 financial instruments, including stocks, cryptocurrencies, commodities, and currencies. The platform also provides educational resources through eToro Academy and allows users to earn interest on account balances. With a user base exceeding 35 million, eToro holds a significant influence in the fintech space, known for its ease of use, security, and comprehensive trading tools.

When Was Spaceship Acquired?

eToro announced its acquisition of Spaceship on September 26, 2024, and completed the deal on November 7, 2024. This acquisition comes at a time when the fintech industry is seeing a surge in consolidations aimed at expanding product offerings and market reach. By integrating Spaceship's superannuation and managed investment portfolios, eToro aims to strengthen its presence in the Australian market and enhance its long-term savings solutions, aligning with broader industry trends towards comprehensive financial platforms.

Why Was Spaceship Acquired?

• Market Expansion: The acquisition of Spaceship significantly strengthens eToro’s footprint in the Australian market, a key region for the company. This move is part of eToro's broader strategy to expand its long-term savings proposition globally, enhancing its product offerings and supporting both new and existing users in Australia.
• Technology Integration: By integrating Spaceship’s superannuation and managed fund proposition into its multi-asset investment platform, eToro users will gain easier access to a wider range of products and services. Conversely, Spaceship clients will benefit from eToro’s global platform, investment tools, and educational resources, providing a seamless experience for users of both platforms.
• Competitive Advantage: The merger allows eToro to offer a more comprehensive suite of investment tools and services, combining its extensive experience and innovative platform with Spaceship’s local expertise and client base. This partnership aims to make investing more accessible and appealing to a broader audience, enhancing the value provided to Australian users and supporting their investing journeys.

Acquisition Terms

• Acquisition Price: The acquisition price is up to $80 million AUD.
• Payment Method: The specific payment method was not publicly disclosed.
• Key Conditions or Agreements:
  • Spaceship clients will continue to be served by the Spaceship brand.
  • Spaceship clients will have the opportunity to access eToro’s products, investment tools, and educational resources in the future.
  • eToro users will gain easy access to Spaceship’s superannuation and managed funds.
  • The integration will be gradual, with the Spaceship brand continuing for now.
  • The acquisition aligns with eToro’s goal of making investing accessible for everyone and shows eToro's commitment to the local market.

Impact on Spaceship

The acquisition of Spaceship by eToro has led to significant operational changes, with Spaceship’s superannuation and managed fund offerings being integrated into eToro’s multi-asset investment platform. This integration aims to provide a seamless experience for users of both platforms, enhancing the range of products and services available. While there have been no explicit mentions of management restructuring, the alignment of both companies' strategies suggests some level of operational integration. The Spaceship brand will continue for now, with a gradual transition into eToro’s ecosystem.

Regarding product offerings, Spaceship clients will now have access to eToro’s extensive suite of investment tools and educational resources, while eToro users can benefit from Spaceship’s superannuation products. Employee reactions have not been explicitly detailed, but the optimistic statements from the CEOs of both companies indicate a positive outlook. Customer feedback has been generally favorable, with many seeing the merger as an opportunity to access a broader range of investment options. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly, ensuring a smooth and efficient transition.