eToro Might Have to Push SPAC Merger Deadline Again: Report

eToro’s attempt for a public listing is at risk as the broker might fail to close its merger with the American blank-check company before the end of 2021, the Israeli news outlet, Calcalist reported on Monday.

Israel-headquartered eToro confirmed its upcoming merger with FinTech Acquisition Corp. V, a SPAC promoted by well-known businesswoman Betsy Cohen. When closed, the deal will put the valuation of the merged entity at $10.3 billion.

The multi-asset Multi-Asset Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Composed of varying asset classes, multi-asset is a blanket designation combining different classes such bonds, equities, cash equivalents, fixed income, and alternative investments.When compared to traditional balanced funds, multi-asset solutions differ because they target specific investment outcomes. This includes outcomes such as return above inflation as opposed to gauging performance against standardized benchmarks.Given the composition of multi-asset classes, they need to be dynamically Read this Term broker already pushed the closure deadline from the end of the third quarter of 2021 to the fourth quarter of the year. The report pointed out that though there are only a few weeks left for the end of the closure deadline, “no shareholders meetings [is] in sight [and] it is clear that the merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term will not be completed in 2021.”

However, that does not mean the merger deal will fall apart as SPAC investors can still vote to proceed with the merger or withdraw the investment proceeds.

PIPE Investors

But, if the deadline is missed, the broker might face issues with the private investment in public equity (PIPE) investors, who committed to inject the sum of $650 million, the report highlighted. These institutional investors include SoftBank's Vision Fund 2, Third Point LLC, Fidelity Management & Research Company LLC and Wellington Management.

Although, eToro can convince the investors again to extend their investment commitment.

“eToro is in the process of becoming a public company via a business combination with FinTech V. We are working with all relevant parties to conclude this as soon as possible. We are incredibly excited about this next chapter in the eToro story,” eToro noted in a statement shared with Finance Magnates.

Meanwhile, the performance of eToro remains strong as the broker reported a 66 percent surge in total commissions generated in the third quarter of 2021 to $222 million. Furthermore, the UK unit of the group posted a 717 percent jump in its revenue in fiscal 2020.