Betsy Cohen-backed blank-cheque company FinTech Acquisition Corporation V said on Thursday it had amended the terms of its merger with Israel’s eToro, cutting the online stock brokerage’s valuation to $8.8 billion from $10.4 billion.
Special purpose acquisition company FinTech said in a regulatory filing the companies will not be able to meet the required closing conditions for the deal by December 31, and had extended the deadline to June 30.
One of the conditions that could not be met was an effective submission of filings by eToro with the US Securities and Exchange Commission that are required for the registration of certain securities by foreign issuers, FinTech said.
SPAC Trend Fizzles
The delay in the deal could affect it in more ways as the SPAC trend has fizzled recently with the shares of several companies such as Grab Holdings and BuzzFeed, which merged with SPACs, tumbling after going public.
A regulatory squeeze in the broader blank-cheque market has also led to some deals getting torpedoed, such as those of sports card firm Topps and cannabis producer Parallel.
EToro’s deal with the blank-check company was announced in March and drew investments from venture capital firms SoftBank’s Vision Fund 2, Fidelity Management & Research and Wellington Management.
Founded in 2007, eToro allows registered users to manually invest in cryptocurrencies, stocks, commodities and more, while those who lack time or experience can automatically copy the trades of others on the platform.
The company competes with Robinhood Markets, which has become hugely popular with young investors for its easy-to-use interface.
- Reuters with additional editing by Jim Pollard
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