eToro, an Israel-based online brokerage offering cryptocurrency and stock trading, is not moving forward with its plans for a SPAC merger, according to sources who spoke to The Information.
The deal was set to take place on Thursday, merging with a SPAC called FinTech Acquisition Corp. V, backed by banking entrepreneur Betsy Cohen.
A spokesperson for the firm told The Information that it would be "sharing an update in the coming days."
The eToro deal was originally struck in March 2021 to merge at a valuation of $10.4 billion. In December, the plan was delayed to June 2022 after failing to get SEC approval. The valuation was dropped to $8.8 billion, based on SEC filings.
As part of the FinTech Acquisition Corp. V deal, the combined company was expected to get over $400 million in private investment in public equity funding, according to the SEC. The merger was going to inject $250 million into eToro from the SPAC, and another $650 million from PIPE funding.
This news follows a broader trend of other tech companies abandoning plans for a SPAC merger due to stock market instability. Media company Forbes canceled plans in early June, and SeatGeek, a ticketing app did the same in May.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.