eToro SPAC merger gets terminated: Here's what happened

July 05, 2022 11:11 AM EDT | By Raza Naqvi
Follow us on Google News:


  • Last year, eToro had said that it would merge with a special purpose acquisition company (SPAC).
  • eToro had about 2.7 million funded accounts at the end of Q2 2022.
  • More than 27 million people have signed up for eToro since its inception.

Leading social investment platform eToro Group Ltd. and FinTech Acquisition Corp. V stated on Tuesday that they had mutually decided to end their previously announced merger agreement.

Last year, eToro had said that it would merge with a special purpose acquisition company (SPAC) called FinTech Acquisition Corp. V.

After the deal was terminated, Betsy Cohen, chairman of FinTech Acquisition, said that eToro has a track record of development and it is still the top worldwide social investment platform.

Meanwhile, Yoni Assia, the chief executive officer and co-founder of eToro, said that the result might not be what the company had hoped for, but the core business of eToro is still robust.

As per the official statement, Mr Assia said that eToro's balance sheet is solid, and it aims to continue to strike a balance between future growth and profitability.

eToro had about 2.7 million funded accounts at the end of Q2 2022, up over 12 per cent from the end of 2021. The growth indicates that the company's acquisition and retention rates have been rising.

Why didn't the deal go through?

According to Mr Cohen, the transaction didn't go through as it became impossible due to factors beyond either party's control. Also, the merger could have been terminated due to highly volatile market conditions.

In 2022, the IPO and SPAC mergers have remained weak due to various macroeconomic factors. Now, with rising inflation and increasing interest rates, it is highly unlikely that investors would opt to invest in private companies going public.

The decision to cancel the merger won't result in payment by any party in the form of a termination fee.

Bottom line

As per the company website, anyone can try to increase their money by joining eToro, a social investment network. To open up the world's markets so that anybody can trade and invest easily and transparently, eToro was established in 2007.

More than 27 million people have signed up for eToro since its inception, and it provides a platform for users to share their investment techniques. Anyone can copy the methods of the most successful users.

Users may effortlessly buy, hold, and sell assets, track their portfolios in real-time, and transact whenever they want.

Please note, the above content constitutes a very preliminary observation or view based on industry/market/digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Top TSX Listed Companies

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK