eToro To Go Public With $ 10.4 Billion SPAC Deal Backed By SoftBank And Others
Online brokerage firm eToro said on Tuesday it would go public through a merger with a blank check firm backed by banking entrepreneur Betsy Cohen in a $ 10.4 billion deal, with an investment from SoftBank’s Vision Fund 2.
EToro competes with Robinhood, which has become extremely popular with young investors for its easy to use interface.
Robinhood has become a gateway for amateur traders challenging Wall Street hedge funds.
The deal with FinTech Acquisition Corp V, a special purpose acquisition company, will include a $ 650 investment from investors, including Fidelity Management & Research Co LLC and Wellington Management.
Founded in 2007, eToro has 20 million registered users who can manually invest in cryptocurrencies, stocks, commodities and more, while those who lack the time or experience can automatically copy other people’s trades. on the platform.
Special Purpose Acquisition Companies, or SPACs, are companies who use the proceeds of an IPO to get private companies to go public. Shares of FinTech Acquisition Corp V jumped more than 15% ahead of the bell.
Cohen, who founded Jefferson Bank and Bancorp Inc, is one of the prominent businesswomen who have joined the SPAC frenzy.
EToro joins a wave of Israeli tech companies and startups, including mobile game company Playtika Holding Corp, which go public in the United States to take advantage of booming financial markets.
In 2020, eToro added more than 5 million new registered users and generated gross revenue of $ 605 million, a 147% jump from the previous year.
EToro will allow users in the United States, who currently trade cryptocurrencies, the ability to buy and sell stocks later this year. Clients outside of the United States can invest in fractional stocks or parts of stocks.
Bitcoin is one of the 25 open positions on eToro, while the most popular stocks are Tesla Inc, Microsoft Corp and Apple Inc, according to the company’s website.