eToro and FinTech Acquisition Corp V have mutually agreed to terminate a merger agreement first announced in March, putting to an end to eToro’s public listing plans
There will be no termination fee because the agreement failed to go through. The merger was first announced in March 2021, and the deadline for the transaction to be completed was June 30.
Co-founder and CEO of eToro Yoni Assia said of the development:
“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. We ended Q2 2022 with approximately 2.7 million funded accounts, an increase of over 12% versus the end of 2021, demonstrating continued customer acquisition and retention rates that have been improving over time.”
Fintech Acquisition Corp V is a special purpose acquisition company, tackling mergers, capital stock exchange, asset acquisition, and stock purchase in the fintech industry. These kinds of companies are also known as blank check companies.
Both companies will be disappointed with the end result, but the crypto market has experienced far worse incidents in recent times. eToro appears to be facing the effects of the recent market crash as it has laid off 100 employees, about 6% of its workforce.
Mergers and acquisitions aplenty in the crypto market
The number of mergers and acquisitions in the crypto market has been steadily growing over the past few years. This is a natural development of a growing market, which has seen multiple companies expand exponentially in terms of valuation.
One of the most prominent acquisitions, though not exactly in the traditional crypto market, was Silvergate acquiring Meta’s Diem stablecoin. Coinbase has also acquired cryptographic security firm Unbound to bolster its security.
As for entities from the traditional finance space, the Deutsche Börse Group has acquired a majority stake in Crypto Finance AG. Developments like these showcase the rapidly increasing interest in the crypto space, despite the ups and downs the market faces.
BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.