FinTech Acquisition Corp. V (Fintech V) – a special purpose acquisition company focused on financial services – has agreed to call off its merger agreement with eToro. The social investing network said that the companies failed to satisfy certain closing conditions by June 30th, making them unable to complete the transaction.
- According to a press release from eToro on Tuesday, one such condition related to the company’s registration statement. Having been left unsatisfied, the merger agreement has been terminated, effective immediately.
- Announced in March, the merger agreement would have allowed eToro to go public. The firm provides a trading platform for stocks, commodities, ETFs, and cryptocurrencies to over 27 million registered users.
- Fintech V is a blank-check (SPAC) firm backed by the banking entrepreneur Betsy Cohen. The chairman showed disappointment over the failed merger agreement, which he blamed on “circumstances outside of either party’s control.”
- Meanwhile, eToro CEO Yoni Assia maintains that the firm’s underlying business remains healthy, despite the undesirable outcome of the deal.
“We remain confident in our long-term growth strategy and excited for the future of eToro,” he said.
- As the agreement to terminate the deal was mutual, neither party will need to pay a termination fee to the other.
- When the merger was announced, the estimated equity value of the combined entities stood at $10.4 billion.
- In November, eToro delisted Cardano and Tron from its platform due to regulatory concerns, which disappointed Cardano founder Charles Hoskinson.