Fintech Acquisition Corp. V (Fintech V) – a special purpose acquisition company focused on financial services – has agreed to withdraw its merger agreement with eToro. The social investment network said the companies failed to meet certain closing conditions by June 30, leaving them unable to complete the transaction.
- According to a press release issued by eToro on Tuesday, one such condition pertains to the company’s registration statement. In case of dissatisfaction, the merger agreement is terminated with immediate effect.
- 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 banking entrepreneur Betsy Cohen. The Speaker expressed dismay at the failed merger agreement, for which he blamed “circumstances beyond the control of either party”.
- Meanwhile, eToro CEO Yoni Asiya says the firm’s underlying business remains healthy despite the undesirable outcome of the deal.
“We are confident in our long-term growth strategy and are excited for the future of eToro,” he said.
- Since the agreement to terminate the deal was mutual, neither party would be required to pay the termination fee to the other party.
- When the merger was announced, the combined entities had an estimated equity value of $10.4 billion.
- In November, eToro delisted Cardano and Tron from its platform due to regulatory concerns, leaving Cardano founder Charles Hoskinson disappointed.
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