Home
Cryptocurrency
Cryptocurrency News
eToro Crypto Trading Firm’s Acquisition Deal With FinTech V Called Off, Here’s Why

eToro Crypto Trading Firm’s Acquisition Deal With FinTech V Called Off, Here’s Why

Certain conditions, that were important for the completion of this deal, failed to close causing the deal to fall apart.

By Radhika Parashar | Updated: 6 July 2022 15:49 IST

Photo Credit: eToro

eToro CEO said the company ended Q2 2022 with around 2.7 million funded accounts

Click Here to Add Gadgets360 As A Trusted Source

Highlights

The proposed merger was initially announced in March 2021
The deal was mutually called off
Neither party will be required to pay the other a termination fee

At a time when mergers and acquisitions have become the saving grace of several crypto businesses, one particular deal has unfortunately collapsed. eToro, the stocks and crypto trading platform is not being acquired by the special purpose acquisition company called FinTech V. Certain conditions, that were important for the completion of this deal, failed to close causing the deal to fall apart. The deadline for these conditions to be met was June 30.

“We are disappointed that the transaction has been rendered impracticable due to circumstances outside of either party's control,” said Betsy Cohen, Chairman of FinTech V while commenting on the matter.

The proposed merger was initially announced in March 2021. Had it been completed; the agreement would have allowed eToro to go public bringing the estimated equity value of the combined entities at around $10.4 billion (roughly Rs. 82,701 crore).

Voyager Digital Files for Bankruptcy Amid Volatile Crypto Market

Now that the deal is off, neither party will be required to pay the other a termination fee.

“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 percent versus the end of 2021,” Yoni Assia, Co-founder and CEO of eToro noted.

eToro also recently announced the addition of a popular blockchain-based metaverse platform The Sandbox to its investment platform, enabling its customers to invest in a metaverse.

EU Agrees Rulebook for 'Wild West' Crypto Markets: What Are the New Rules?

Back In January, eToro announced the launch of its metaverse-themed smart portfolio dubbed MetaverseLife, aimed at offering investors long-term exposures to stocks, crypto-assets, and key projects within the metaverse industry.

As per a report by PWC, mergers and acquisition activity in the crypto sector swelled in 2021 with the global value of such transactions totalling more than $55 billion (roughly Rs. 4,35,893 crore), versus $1.1 billion (roughly Rs. 8,717 crore) in 2020.

Is Poco F4 5G a new best-of contender under Rs. 30,000? We discuss this on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

Affiliate links may be automatically generated - see our ethics statement for details.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.