eToro and FinTech Acquisition Corp V have agreed to terminate the merger agreement first announced in March, ending eToro’s planned public listing.
There will be no termination fee due to a failed agreement. The merger was announced in March 2021, and the transaction completion deadline is June 30.
eToro co-founder and CEO Yoni Assia said of the development:
“While this may not be the result we expected when we started the process, eToro’s underlying business remains healthy, the balance sheet is strong, and we will continue the future balance growth with profitability. We ended Q2 2022 with 2.7 million accounts funded, an increase of more than 12% compared to the end of 2021, indicating customer acquisition and retention rates have continued to increase over time.”
Fintech Acquisition Corp V is a special purpose acquisition company dealing with mergers, stock exchanges, asset acquisitions, and share purchases in the fintech industry. Such companies are also known as blank check companies.
Both companies will be disappointed with the final result, but the crypto market has been experiencing much worse incidents lately. eToro appears to be facing the effects of the recent market crash as it saw the layoff of 100 employees, about 6% of its workforce.