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Trading platform eToro is going public via a $10 Billion SPAC (Special Purpose Acquisition Company) merger. Having approximately 20 million users, the platform competes with Robinhood. The merger is backed by SoftBank and Betsy Cohen, the banking entrepreneur. The merger will value the company at $10 billion.
The combined company will work as Israeli brokerage application eToro group ltd. and be listed on the Nasdaq.
Israeli Brokerage Application eToro
Founded in 2007, eToro has its roots in the United States since 2018. Having no less than 20 million users across 140 countries, eToro allows users to invest in stocks, exchange-traded funds, as well as for cryptocurrencies. The expansion covers the United Kingdom, Australia, Germany, and Switzerland. The primary competitor of the application is Robinhood.
Yoni Assia, CEO, and co-founder of eToro, given a statement long back in 2018 stating:
“Consumers all over the world should have access to the tools they need to participate in cryptocurrency markets, regardless of their expertise.”
According to eToro, “The merger with FinTech Acquisition Corp. V, the combined entity will have an implied equity value of about $10.4 billion, reflecting an implied enterprise value for eToro of about $9.6 billion,”
The application is itself a “social trading network.” It gives a “Copy People” option to the users, allowing them to locate investors that are in sync with their trading and investing needs.
The Merger with SPAC
The Deal with Cohen’s SPAC FinTech Acquisition Corp V comprises $650 million common shares private placement. These shares are provided by investors counting Fidelity Management and Research, SoftBank’s Vision Fund 2, and Wellington Management.
SPACs or “blank check companies” are publically-listed funds. The existential purpose is to make companies public by acquiring them. According to the U.S. Security and Exchange Commission (SEC),
“A SPAC is created specifically to pool funds in order to finance a merger or acquisition opportunity within a set timeframe. The opportunity usually has yet to be identified.”