SPAC Deal Values eToro at $9.6 Billion
Posted by Colin Lambert. Last updated: March 17, 2021
Social trading platform eToro has entered into a definitive business combination agreement with special purpose acquisition company (SPAC) FinTech Acquisition Corp.
Upon closing of the transaction, the combined company is expected to be listed on Nasdaq and will have, the company says, an implied equity value of $10.4 billion.
eToro was founded in 2007 and has evolved to become a challenger in the “commission-free” equities brokerage industry as well as offering FX and crypto services. It’s core proposition at launch was to allow investors to mirror trade by replicating successful trader strategies.
The growth in retail investing is highlighted in numbers touted by the company, which does not surrently operate in the US, but has applied for regulatory approval to do so. It says that in 2020, it added over five million new registered users and generated gross revenues of $605 million, representing year-over-year growth of 147%. Furthermore, it claims to have added more than 1.2 million registrations in January 2021, significantly above the monthly average of 440,000 throughout 2020. Additionally it says that in January it executed more than 75 million trades, again significantly above the 2020 monthly average of 27 million.