Yesterday, Tuesday, the takeover of the fintech special company Acquisition Corp. V announced that the takeover of the Israeli crypto exchange eToro for the purpose of the IPO by SPAC has now been stopped by mutual agreement. Betsy Cohen, President of Fintech V, explains:
“eToro continues to be one of the world’s leading trading platforms, proven in the market and showing strong growth. We are disappointed that the transaction did not go through due to external circumstances beyond the control of either party. . We wish [Geschäftsführer] Yoni and her team continued the success.”
Last year, eToro and Fintech V announced a proposed acquisition by SPAC, a transaction said to be worth $10 billion. However, eToro is now likely to face financial difficulties in connection with the ongoing bear market. To fix this imbalance, the trading platform is trying to raise investment capital ranging from $800 million to $1 billion.
Meanwhile, publicly traded acquisition vehicle Fintech V, which aims to merge with a private company to also achieve publicly traded status, has $250 million in reserves.
Yoni Assia, Managing Director of eToro stressed that her company is still healthy given the failed acquisition:
“Our financial position remains solid and we will continue to balance growth and profitability in a meaningful way in the future. We ended Q2 2022 with approximately 2.7 million active accounts, a 12% increase from the end of 2021. This shows that our customer acquisition and retention continues to improve.”