The new normal. Trading platform eToro has confirmed that it will become a publicly traded company via a merger with a special purpose acquisition company (SPAC).
The firm shared the news in a press release.
A merger with FinTech Acquisition Corp. V will give the combined entity an implied value of about $10.4 billion. This reflects an implied enterprise value of about $9.6 billion for eToro, the company says. The combined company will operate as eToro Group Ltd, and will be listed on Nasdaq.
The deal includes $250 million in gross proceeds from the FinTech V cash in trust from a fully committed private placement in public equity at $10 per share that will close at the same time as the merger.
Goldman Sachs is advising eToro, while Citi is advising FinTech V.
FinTech Acquisition Corp. V is led by Betsy Cohen, who has been involved with several other SPACs, including one that took Perella Weinberg public. Its shares skyrocketed 43% after it announced its plans to become publicly traded through business combination with the online broker.
As for eToro, it follows the eagerly awaited public listing of Coinbase that may reach a valuation of $100 billion, and is expected to ignite a wave of crypto firms going public — many of them making use of SPACs to do so.
Another crypto currency exchange Bakkt is also expected to carry a SPAC merger later this year, valuing the combined entity at $2.1 billion.
New normal, indeed.
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