The deal has been terminated as some preceding conditions were not met, which meant that the parties could not finalise it by the deadline of 30 June 2022
FinTech Acquisition and eToro mutually terminate their merger deal. (Credit: aymane jdidi from Pixabay)
FinTech Acquisition Corp. V and Israeli social trading platform eToro Group have mutually agreed to scrap their previously announced $10.4bn merger deal with immediate effect.
The deal has been terminated as certain preceding conditions were not met, which meant that the parties could not finalise it by the deadline of 30 June 2022.
Neither party will have to pay the other any fees for termination of the deal.
FinTech Acquisition chairman Betsy Cohen said: “eToro continues to be the leading global social investment platform, with a proven track record of growth and strong momentum. 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.”
The parties announced the deal in March 2021. It would have enabled eToro Group to go public with an expected listing on NASDAQ besides providing cash proceeds of nearly $800m.
Founded in 2007, eToro is a multi-asset investment platform designed to support investments in equities, currencies, exchange-traded funds (ETFs), cryptoassets, commodities, and smart portfolios.
FinTech Acquisition is a special purpose acquisition company (SPAC) that is listed on NASDAQ.
The SPAC was formed with an intention to enter into a merger, asset acquisition, capital stock exchange, stock purchase, reorganisation or similar business combination with companies focused on financial technology.
EToro co-founder and CEO Yoni Assia said: “We would like to thank Betsy and the entire FinTech V team for their hard work, diligence and support throughout this process.
“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.”