eToro, FinTech V Cancel the SPAC Merger Agreement

Social investment network eToro Group and the Special Acquisition Company (SPAC) FinTech Acquisition Corp. V (FinTech V) has decided to cancel its planned merger for an IPO, according to a Tuesday (July 5) press release.

Originally announced in March 2021, proposed merger the agreement and the change failed to meet the final conditions within the outlined time frame. As a result, the transaction could not be completed by the June 30 deadline.

When the plan was announced in March last year, eToro said it expects a valuation of $ 10.4 billion. FinTech V Chairman Betsy Cohen pointed to the strength of eToro as an online social trading platform outside the United States, as well as its many revenue streams.

Read more: Investment platform eToro plans to announce, expects a valuation of 10.4 billion dollars

“eToro continues to be the leading global platform for social investment, with a proven track record of growth and strong momentum,” Cohen said in Tuesday’s release, adding that it was disappointing that things did not work “due to circumstances beyond the control of any of the parties.”

Because the decision to terminate the agreement was reciprocal, neither eToro nor FinTech V will have to pay a termination fee to the other, according to the release.

“While this may not be the result we hoped for when we started this process, eToro’s underlying business remains healthy, our balance sheet is strong and will continue to balance future growth with profitability,” said eToro co-founder and CEO Yoni Assia said in the release.

Assia added that eToro ended the second quarter of this year with an estimated 2.7 million funded accounts, up 12% from the end of 2021. The company’s customer acquisition and storage rates also continue to increase, increasing confidence in the company’s overall long-term growth strategy.

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