Five Firms Guide eToro’s $10.4 Billion Go-Public SPAC Merger

March 17, 2021, 10:55 AM

Skadden, Arps and Israeli firm Meitar Law Offices are advising a social investment platform, eToro Group Ltd., on its go-public merger with FinTech Acquisition Corp. V, a special purpose acquisition company.

Morgan, Lewis & Bockius and Israeli firm Gornitzky & Co. are advising FinTech V.

After the transaction’s expected second-quarter closing, the combined company will operate as eToro Group Ltd. It is expected to be listed on the Nasdaq exchange, with an estimated equity value of around $10.4 billion, according to a statement.

The companies are raising about $650 million in equity from investors, with Davis Polk & Wardwell advising the private placement agents.

Founded in Israel in 2007, eToro says it has over 20 million registered users across over 100 countries. The company said it added over 5 million new users just in 2020, generating gross revenues of $605 million, up 147% from 2019.

In 2019, the company launched crypto and social trading in the U.S. It has received approval from the U.S. Financial Industry Regulatory Authority Inc. for a broker dealer license, and it plans to launch stocks in the U.S. in 2021’s second half, the statement says.

“In the last few years, eToro has solidified its position as the leading online social trading platform outside the U.S., outlined its plans for the U.S. market, and diversified its income streams,” said Betsy Cohen, chair of FinTech V’s Board of directors. “It is now at an inflection point of growth, and we believe eToro is exceptionally positioned to capitalize on this opportunity.”

To contact the correspondent on this story: Rick Mitchell in Paris at rmitchell@correspondent.bloomberglaw.com
To contact the editor on this story: Chris Opfer in New York at copfer@bloomberglaw.com; John Hughes in Washington at jhughes@bloombergindustry.com

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