Johnathan “Yoni” Assia, eToro CEO, pictured in 2016.
Photo:
Chris Ratcliffe/Bloomberg News
EToro Group Ltd. said Tuesday it will go public through a deal to combine with special-purpose acquisition company
Upon closing of the transaction, the combined company will operate as eToro Group Ltd. and is expected to be listed on Nasdaq, the company said.
The new company is expected to have an estimated implied equity value of $10.4 billion at closing, reflecting an implied enterprise value for eToro of $9.6 billion, the online brokerage firm said.
The transaction includes $250 million in proceeds from FinTech V’s cash in trust and $650 million in proceeds from a fully committed private placement in public equity at $10 a share from various strategic and institutional investors that will close concurrently with the business combination, eToro said.
These investors include ION Investment Group, SoftBank Vision Fund 2, Third Point LLC, Fidelity Management & Research Company LLC and Wellington Management, the company said.
The new company is expected to have about $800 million cash on its balance sheet to support future growth, eToro said.
Existing eToro equity holders, including current investors and employees of the company, will remain the largest investors in the combined company, retaining 91% ownership immediately following the business combination, eToro said.
The business combination is targeted to close in the third quarter of 2021, the company said.
FinTech V shares were up 15% to $12.28 in premarket trading.
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