eToro introduced to public trading through merger with FinTech Acquisition

Multi-asset investment platform, eToro Group, and FinTech Acquisition Corp. V, a publicly traded special purpose vehicle (SPAC), announced that they had entered into a definitive business combination agreement. Upon closing of the transaction, the combined company will operate as eToro Group Ltd. and is expected to be listed on the NASDAQ.

eToro was founded in 2007 with the vision to open up capital markets. The global social investment network offers users the choice of which assets to invest in – from commission-free fractional shares to cryptocurrencies – and the choice of how to invest. Users can trade on their own, invest based on a smart investment portfolio, or with a simple click, duplicate the investment strategy of successful investors on the investor platform at no extra cost.

The company is expected to have an implied equity value of approximately $10.4 billion. In 2020, the eToro platform added over 5 million new registered users and generated gross revenue of $605 million. In January 2021 alone, the platform added over 1.2 million new registered users and completed over 75 million transactions.

The transaction includes commitments for a private placement of $650 million of common stock from major investors including ION Investment Group, Softbank Vision Fund 2, Third Point, Fidelity Management & Research Company, and Wellington Management.

(WBJ)