eToro has announced it will go public after reaching a deal with Fintech V, a special purchase acquisition company, a pioneer in the evolution of SPACs.
Existing eToro equity holders will retain approximately 91% ownership in a deal with an estimated implied equity value of approximately $10.4 billion.
The deal is expected to go through in the third quarter of 2021 and once it does, the combined company will operate as eToro Group Ltd. and intends to be listed on NASDAQ.
Yoni Assia, Chief Executive Officer of eToro, said: “We founded eToro with the vision of opening the global market for everyone to trade and invest in a simple and transparent way. Today, eToro is the world’s leading social investment network.
“Our users come to eToro to invest, but also to communicate with each other; to see, follow, and automatically copy successful investors from all around the world. We created a new category of wealth management – social investing – and we are dominating the market as evidenced by our rapid expansion.”
“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”, Assia added.
Betsy Cohen, Chairman of the Board of Directors of 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.
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 transaction includes $250 million in gross proceeds from FinTech V’s cash in trust and $650 million in gross proceeds from a fully committed private placement in public equity (“PIPE”) at $10.00 per share from a number of investors, including ION Investment Group, Softbank Vision Fund 2, Third Point LLC, Fidelity Management & Research Company LLC, and Wellington Management.