Israel's EToro to abandon deal to go public via SPAC merger: report

Photo: Almani/ Unsplash.com

Online brokerage eToro and Betsy Cohen-backed blank-check firm FinTech Acquisition Corp V are planning to let the Thursday deadline for their merger pass without closing the deal, The Information reported, citing a person familiar with the matter.

The companies had amended their agreement in late December to extend the deal deadline to June end and lower the Israel-based online stock brokerage’s valuation to $8.8 billion from $10.4 billion.

EToro said in an emailed statement on Thursday that it would share an update in the coming days, without giving more details. FinTech Acquisition did not immediately respond to a Reuters request for comment.

After taking Wall Street by storm in 2021, deals involving blank-check companies have seen a decline in interest this year due to rising regulatory scrutiny, a selloff in tech stocks and the poor share performance of companies that took the alternate route to go public.

In a bid to stop special-purpose acquisition companies (SPACS) from issuing overly optimistic earnings projections, the U.S. securities regulator has also unveiled a draft rule that would require them to disclose more details about their listings.

Reuters

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