eToro announces IPO through a $10.4 billion merger

In a press release issued on Tuesday, eToro, the world’s leading social investment network, have announced to become publicly traded through a $10.4 billion merger with FinTech Acquisition Corp. In what is called a special purpose acquisition (SPAC), proceeds from an initial public offering (IPO) will take eToro to the public space.

 “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,” Yoni Assia, eToro Chief Executive Officer said.

By becoming publicly traded, the company that was founded in 2007 with the vision of opening up capital markets, is expected to have an estimated implied equity value of approximately $10.4 billion.

The global multi-asset investment platform has over 20 million registered users and its social community is rapidly expanding due to the vast, and growing, total addressable market which is supported by secular trends such as the growth of digital wealth platforms and the rise in retail participation.

“We founded eToro with the vision of opening the global market for everyone to trade and invest in a simple and transparent way. Today, eToro is the world’s leading social investment network. Our users come to eToro to invest, but also to communicate with each other; to see, follow, and automatically copy successful investors from all around the world,” Assia, added.

The platform with its multi-asset offering is considered a force to reckon with and a strong competitor of online trading platform Robinhood.

eToro have experienced significant growth in the past year, having added over 5 million new registered users in 2020 and 1.2 million in January alone. Gross revenues generated in 2020 accounted for $605 million.

Betsy Cohen, Chairman of the Board of Directors of FinTech V and well-known businesswoman with extensive experience in SPAC, commented on the deal:

 “As a pioneer in the evolution of SPACs, Fintech Masala, our sponsor platform, seeks out companies with outsized growth, effective controls and excellent management teams. eToro meets all three of these criteria. 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. It is now at an inflection point of growth, and we believe eToro is exceptionally positioned to capitalize on this opportunity.”

The announcement follows some of the great in the crypto world, where Coinbase and Kraken have recently made similar announcements to enter the public space, with the former expected to go public within a few weeks.