eToro is in the talks to merge with a US SPAC called Fintech Acquisition Corp. The deal has not yet been signed, but this SPAC has seen its share prices go up the last few months as it is the parent company of trading app Robinhood that completed its IPO recently. This boost in Fintech prices due to the Robinhood IPO is expected to boost eToro’s valuation.
Just yesterday, Fintech’s prices rose by 15.8% on Nasdaq following a rise in Robinhood’s shares by 50%. At present, each share of Fintech Acquisition Corp. is valued at $12.65, which is a significant increase from its original IPO price of 410 per share. Recently an investor on ‘Seeking Alpha,’ an investor website, has called eToro the ‘European Robinhood.’ However, the investor also believes that the present valuation of eToro is too cheap compared to its full potential.
eToro was established in 2007 and is one of the most reputed names in the world of Fintech. It is regulated by multiple authorities like the FCA, CySEC, and the ASIC. But after many years of operation, in March of this year, the founder of the company Yoni Assia announced that eToro would merge with a SPAC. The merger will happen with eToro having a valuation of $10.4 billion and an enterprise value of $9.6 billion. The merger will also include the liquidity available in eToro treasury at the time of the merger.
To learn more about the features of services of eToro that justify its valuation, read an eToro review. Once the eToro and Fintech Acquisition Corp V merger is completed, nearly $650 million will be invested into the newly merged company by SoftBank, Wellington, Fidelity, and some other big investors. Robinhood has already strengthened Fintech’s financial position, and eToro is expected to benefit from investors’ faith in Fintech’s strategic acquisitions.