HomeNewsFinanceeToro And Fintech V Cancel Their Merger IPO Due To External Circumstances

eToro And Fintech V Cancel Their Merger IPO Due To External Circumstances

Many people were surprised when eToro Group canceled its initial public offering this week. The initial plan involved merging with Fintech Acquisition Corp. V (FinTech V). However, the plans have been put on hold as the merger failed to meet closing conditions ahead of the June 30, 2022 deadline. 

eToro Delays Its IPO

It is unfortunate when carefully laid out plans do not come to fruition. eToro Group had a bold plan to launch its IPO through a merger with Fintech V. Those plans were set in motion in March 2021, giving all parties ample time to ensure the conditions could be met. Even so, the deal fell through at the last moment due to falling short of closing conditions within the expected timeframe. 

The bold plan by eToro would have put the company at an estimated valuation of $10.4 billion. That number was thrown around in March 2021, although it remains unclear if such a target is plausible in the current market conditions. Many companies struggle to maintain earlier valuations, and eToro’s figure only exists on paper. 

eToro CEO and Co-founder Yoni Assia adds:

“While this may not be the outcome that we hoped for when we started this process, eToro’s underlying business remains healthy, our balance sheet is strong and will continue to balance future growth with profitability.”

Moreover, eToro remains one of the premier social investment platforms globally. Its track record of growth and proven momentum speaks for itself, with more potential ahead. However, the falling through of this deal is not the fault of either company. External events and circumstances have a habit of throwing a wrench into plans, especially in recent years. 

JP Buntinx
JP Buntinx
JP Buntinx is passionate about cryptocurrencies, fintech, blockchain, and finance. He currently resides in Belgium.
RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Press Releases

WP Twitter Auto Publish Powered By : XYZScripts.com