eToro Group Ltd., a multi-asset investment platform, and FinTech Acquisition Corp. V (NASDAQ: FTCV), a publicly-traded
special purpose acquisition company, have merged.
Upon closing of the transaction, the combined company will operate as eToro Group Ltd. and is expected to be listed on NASDAQ.
The company is expected to have an estimated implied equity value of approximately $10.4 billion at closing, reflecting an implied enterprise value for eToro of approximately $9.6 billion. The transaction
includes $250m in gross proceeds from FinTech V’s cash in trust (assuming no redemptions) and $650m in gross proceeds from a fully committed private placement in public equity at $10.00 per share from various strategic and institutional investors, including ION Investment Group,
Softbank Vision Fund 2, Third Point LLC, Fidelity Management & Research Company LLC, and Wellington Management, that will close concurrently with the business combination.
Founded in 2007 and led by Yoni Assia, Chief Executive Officer, eToro is a social investment network supporting investments in equities, ETFs, commodities, currencies, cryptoassets and smart portfolios. Users can trade directly themselves, invest in a smart portfolio, or replicate the investment strategy of investors on the platform.
eToro currently has over 20 million registered users from over 100 countries and its global platform is regulated in the U.K., Europe, Australia, the U.S. and Gibraltar.
The company is expected to have approximately $800m net cash on its balance sheet to support future growth.
Existing eToro equity holders, including current investors and employees of the firm, will remain the largest investors in the combined company retaining approximately 91% ownership immediately following the business combination (assuming no redemptions by FinTech V’s stockholders).
The business combination, which has been unanimously approved by the boards of directors of both eToro and Fintech V, is targeted to close in the third quarter of 2021, subject to stockholder approvals and other customary closing conditions.