eToro will go public by merging with FinTech Acquisition Corp as per the press release that we have in our cryptocurrency news today. The social trading platform has an estimated valuation of $10.4 billion as of now.
The CEO of eToro Yoni Assia noted:
“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.”
Launched back in 2007, eToro introduced a new concept of social trading which allows the traders to “copy people” and to follow their deals so now, it has more than 20 registered users with its community expanding fast. Apart from CFDs and stocks, eToro supports investing in cryptos like Ethereum and Bitcoin. eToro will go public via a merger with Fintech Acquisition Corp and the FinTech V will act as a SPAC- special-purpose acquisition company.
SPAC is not a real firm but it is a shell company as eToro explained so when the transaction is completed, the combined company will “operate as eToro Group LTD and it is expected to be listed on NASDAQ” as the press release noted. This means that the Fintech V current ticker FTCV will be changed to eToro’s. Betsey Cohen a chairman at FinTech V said:
“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.”
The deal will include $650 million in equity distributed via private placement or a closed sale for institutional and strategic investors. The buyers will include Softbank Vision Fund 2, ION Investment Group, Fidelity Management and Research Company, Third Point, and Wellington Management. The SPAC is expected to have about $800 million on its balance sheets to support more growth while in the meantime time, the shareholders of the company and the current investors will retain 91% ownership of the entity. The SPAC IPO will take place in the third quarter of 2021 as the release said.
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