eToro’s announcement confirmed that the estimated implied equity value of the merger is $10.4 billion at closing, putting the implied enterprise value for eToro at $9.6 billion. The announcement further revealed that $250 million will be raised from FinTech V’s cash in trust and $650 million from private placement in the public equity. The company reported that institutional investors including ION Investment Group, Softbank Vision Fund 2, Third Point LLC, Fidelity Management & Research Company LLC and Wellington Management will receive the equity at $10 per share.
The announcement stated that existing eToro equity holders will retaining 91% ownership following the merger with FinTech V.
The board of the directors of both companies have unanimously approved the merger, however it is still pending stockholder approvals. The deal is expected to close in the third quarter of 2021.
Betsy Cohen, Chairman of the Board of Directors of FinTech V, said:
Betsy Cohen Source: LinkedIn
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.
Yoni Assia, Chief Executive Officer of eToro commented:
Yoni Assia Source: LinkedIn
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.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
