eToro and FinTech V call off proposed SPAC merger
Social investment platform eToro and FinTech Acquisition Corp V, a publicly traded special purpose acquisition company (SPAC), have mutually agreed to terminate their proposed merger agreement, effective immediately.
The merger plans were officially announced in March 2021, while reports that eToro was planning to go public initially surfaced in January 2021.
The firms say that despite both parties’ best efforts, the conditions required to close the deal were not satisfied and “the parties were unable to complete the transaction by the June 30, 2022 deadline”.
Neither party will be required to pay the other a termination fee, as the decision to terminate the agreement was mutual.
“While this may not be the outcome that 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,” says Yoni Assia, co-founder and CEO of eToro.
Assia claims that eToro ended Q2 2022 with approximately 2.7 million funded accounts, an increase of over 12% versus the end of 2021, noting that customer acquisition and retention rates have improved over time.
“Although we are disappointed that the transaction has been rendered impracticable due to circumstances outside of either party’s control, we wish Yoni and his talented team continued success,” says Betsy Cohen, chairman of FinTech V.