eToro confirmed on Tuesday that the Israeli trading company will merge with blank check company FinTech Acquisition Corp. V for making its public debut on Nasdaq.
The confirmation from the trading company has come after many media reports revealed its plans to go public for months.
The combined companies will operate as eToro Group Ltd, and the estimated implied equity value will be around $10.4 billion at closing, which is a value that was expected from earlier reports. This will put the implied enterprise value for eToro at $9.6 billion.
The official announcement further detailed that $650 million will be raised from private placement in the public equity and another $250 million from FinTech V’s cash in trust. Private investors, including ION Investment, Softbank and Fidelity, will receive the equity at $10 per share.
Existing eToro investors will hold 91 percent of the combined entity formed with the SPAC merger.
Though the boards of both eToro and SPAC approved the deal, it is now pending shareholders’ approval and is expected to close in the third quarter of 2021.
Commenting on the major development, eToro Co-Founder and CEO, Yoni Assia said: “Today marks a momentous milestone for eToro as we embark on our journey to become a publicly-traded company with Betsy Cohen and the team at FinTech V. I want to express my gratitude for the passion, hard work, drive and determination of all of the eToro team members over the past 14 years who have helped make this a reality.”