Asset brokerage company eToro looks set to complete a multibillion-dollar partnership with Fintech Acquisition Corp. The latter (FTCV) surged by 20% on the stock market following the merger’s unconfirmed reports. eToro broke the news via its official Twitter page.
We’re excited to share that eToro will become publicly traded through a business combination with FinTech Acquisition Corp. V ($FTCV). Info: https://t.co/gVuS14A3Ak
— eToro (@eToro) March 16, 2021
The partnership is the latest addition to the growing list of multi-million-dollar mergers in the Fintech industry. It also highlights the motive of industry players to align themselves with the new financial landscape. The deal will reportedly birth a $10 billion company.
Speaking on the partnership, Chief Executive Officer of eToro, Yoni Assia, said:
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.
Fintech Acquisition Corp. V is a special purpose acquisition company specially designed to enter mergers with fintech companies. Its Chairman of the Board of Directors, Betsy Cohen, commented on the merger.
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. It is now at an inflection point of growth, and we believe eToro is exceptionally positioned to capitalize on this opportunity
The board of directors of both companies has jointly agreed to the merger. It is scheduled to be completed in the third quarter of the year, pending stakeholders’ approval.
eToro targets continued growth trajectory
eToro has experienced explosive growth in the past few years. It has expanded operations to over 100 countries. Also, it has amassed 20 million registered users in the process. In 2020 alone, it added about 5million users and generated $605 million in revenue.
The company gave details of the merger in a press release. It outlined that it is expected to have an equity value of $10.4 billion at the close of the merger. This includes eToro’s enterprise value of $9.6 billion.
