Israeli trading platform eToro has notified the US Securities Exchange Commission (SEC) of a delay in completing its SPAC merger. The merger was supposed to be completed by the end of the third quarter - next week.
eToro announced in March that it would be merging with US SPAC FinTech Acquisition Corp. V, managed by US businessperson Betsy Cohen. The merger gives eToro a valuation of $10.4 billion, reflecting an enterprise value of $9.6 billion. This is the second largest ever SPAC merger of an Israeli company after app monetization company ironSource (NYSE: IS), which completed its merger at a valuation of $11.1 billion.
According to its notification to the SEC, eToro now plans completing the SPAC merger in the fourth quarter of 2021, subject to approval from the shareholders of Fintech Acquisition Corp. V and other conditions. No date has been set for the shareholders to convene to approve the deal. Usually once such approval granted, then the merger is completed within a few days.
eToro said, "We anticipate that we will complete the merger and that eToro will become a listed company during Q4. We're very excited about the next stage in our journey."
eToro was founded in 2007 by brothers Yoni and Ronen Assia and David Ring. Yoni Assia serves as CEO. The company's platform allows users to invest in a range of stocks, commodities, indices and cryptocurrencies.
Under the terms of the SPAC merger, eToro will receive an injection of $250 million in cash raised by FinTech Acquisition Corp. V together with a an additional $650 million in commitments for a common share private placement (PIPE) from leading investors including ION Investment Group, Softbank Vision Fund 2, Third Point LLC, Fidelity Management & Research Company LLC, and Wellington Management.
Published by Globes, Israel business news - en.globes.co.il - on September 22, 2021
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