According to the latest announcement, eToro is going to merge with a blank check firm FinTech Acquisition Corp. V to pursue a public listing on Nasdaq.
For a long time, there have been some rumors about the plan of the FinTech company going public published by many media organs.
The value of the company is estimated to be around $10.4 billion and the consolidated companies will be under the name of eToro Group Ltd.
The combined companies will operate as eToro Group Ltd, and the estimated implied equity value will be around $10.4 billion at closing, which is a value that was expected from earlier reports. The share of eToro in the enterprise value will see the level of $9.6 billion.
According to the official announcement, $650 million will be provided by the private placement in the public equity and FinTech V’s cash in trust would be $250 million. Private investors, including Softbank, ION Investment, and Fidelity, will enjoy the equity at $10 per share.
The deal is approved by the boards of both eToro and SPAC and it is expected to happen in the third quarter of 2021 with the approval of shareholders.
The mastermind behind this successful social trading platform, eToro Co-Founder and CEO, Yoni Assia stated: “Today marks a momentous milestone for eToro as we embark on our journey to become a publicly-traded company with Betsy Cohen and the team at FinTech V. I want to express my gratitude for the passion, hard work, drive and determination of all of the eToro team members over the past 14 years who have helped make this a reality.”
This merger also underlined the increasing popularity of Special Purpose Acquisition Companies (SPAC). The traditional initial public offering (IPO) process was a difficult route to the stock exchange and the picture has changed with the introduction of such companies.
Betsy Cohan, the Chairman of the Board of Fintech V Spac declared: “As a pioneer in the evolution of SPACs, Fintech Masala, our sponsor platform, seeks out companies with outsized growth, effective controls and excellent management teams. eToro meets all three of these criteria. In the last few years, eToro has solidified its position as the leading online social trading platform outside the U.S., outlined its plans for the U.S. market and diversified its income streams.”
2020 was a magnificent year for eToro. The company has acquired over 5 million new customers with year-over-year growth of 147%.