eToro Confirms Terminating SPAC Merger With FinTech Acquisition: Key Takeaways

Author: Anusuya Lahiri | July 05, 2022 08:51am

Special purpose acquisition company (SPAC) FinTech Acquisition Corp V (NASDAQ:FTCV) and leading social investing network eToro Group Ltd mutually agreed to terminate their merger plan immediately.
Media reports floated earlier over the possible termination of the deal.
Initially announced in March 2021, the proposed merger was subject to the satisfaction of certain closing conditions. However, the companies failed to accomplish the targets by the June 30 deadline.
Yoni Assia, Co-founder, and CEO of eToro, said: “We ended Q2 2022 with approximately 2.7 million funded accounts, an increase of over 12% versus the end of 2021, demonstrating continued customer acquisition and retention rates that have been improving over time. We remain confident in our long-term growth strategy and excited for the future of eToro.”
Neither party will be required to pay the other a termination fee.
eToro targeted a $1 billion funding round to dodge its delayed attempt to go public.
However, as the markets moved southwards, eToro, like most other brokers, failed to sustain its previous growth trajectory as required by closing conditions for its SPAC deal.
Price Action: FTCV shares closed at $9.85 on Friday.