eToro’s SPAC Partner Will Return $250M to Investors

The Collapse of a Merger Deal

SPAC inked a deal with eToro in March 2021 to take the Israeli retail broker public on an American stock exchange. The merger was initially valued at $10.4 billion but was later reduced by 15 percent to $8.8 billion.

However, that deal collapsed as the two companies failed to close before the deadline of 30 June as certain conditions, including those relating to the Company’s registration statement, were not met. The deal termination decision was also mutual, meaning neither company was liable to pay a termination fee.

eToro, which has made its name with copy trading services, is a popular retail trading platform with a global presence. In addition, it became popular by offering cryptocurrency services. The number of active customers on the platform doubled in 2021 to 2.4 million.

The broker is now strengthening its offerings with the addition of regulatory licenses and acquisitions. It recently launched options trading services in the United States, only months after the $50 million acquisition of Gatsby, a commission-free options and stocks trading firm.

"We wish Betsy Cohen and her team all the best with their future endeavours," an eToro spokesperson told Finance Magnates.

SPAC did not clarify if it sought deals with other companies looking to go public after the collapse of the eToro deal.