Social investing network eToro Group and the special purpose acquisition company (SPAC) FinTech Acquisition Corp. V (FinTech V) have decided to call off their planned merger for an initial public offering (IPO), according to a Tuesday (July 5) press release.
Initially announced in March 2021, the proposed merger agreement and amendment failed to meet the closing conditions within the outlined timeframe. As a result, the transaction couldn’t be completed by the June 30 deadline.
When the plan was announced in March of last year, eToro said that it was anticipating a valuation of $10.4 billion. FinTech V Chairman Betsy Cohen pointed to the strength of eToro as an online social trading platform outside the U.S. as well its multiple income streams.
Read more: Investment Platform eToro Plans to Go Public, Expects $10.4B Valuation
“eToro continues to be the leading global social investment platform, with a proven track record of growth and strong momentum,” Cohen said in the Tuesday release, adding that it was disappointing that things didn’t work out “due to circumstances outside of either party’s control.”
Because the decision to terminate the deal was mutual, neither eToro nor FinTech V will have to pay a termination fee to the other, according to the release.
“While this may not be the outcome that we hoped for when we started this process, eToro’s underlying business remains healthy, our balance sheet is strong and will continue to balance future growth with profitability,” said eToro Co-Founder and CEO Yoni Assia said in the release.
Assia added that eToro ended the second quarter of this year with an estimated 2.7 million funded accounts, which is up 12% compared with the end of 2021. The firm’s customer acquisition and retention rates are also continuing to go up, adding to its confidence in its overall long-term growth strategy.
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