eToro and FinTech Acquisition Corp. V on Tuesday announced their decision to officially terminate their merger plans.
The firms announced their proposed merger in March 2021. However, more than a year after it was announced, the Israel’s online brokerage eToro and Betsy Cohen-backed blank-check company entered into a termination agreement on 1 July.
The growing inflation and worries over recession have made the conditions challenging and the two companies decided against the merger. According to the official announcement, neither party will pay a termination fee.
Yoni Assia, eToro Co-Founder and CEO, said:
In the current market environment, we believe that it is in the best interests of eToro to terminate the merger agreement and continue, for now, to operate as a private company. I would like to thank Betsy Cohen and the entire FinTech V team for their hard work, diligence and support throughout this process.
Betsy Cohen, Chairman of FinTech V commented:
eToro continues to be the leading global social investment platform, with a proven track record of growth and strong momentum. Although we are disappointed that the transaction has been rendered impracticable due to circumstances outside of either party’s control, we wish Yoni and his talented team continued success.
Assia also highlighted that the current bear market presents an opportunity to eToro to focus its efforts on educating its users to handle risk through challenging period.
This is not our first bear market or our first crypto winter. Over the past 15 years we have weathered many market cycles, emerging stronger from the experience. Our global footprint, diverse product offering and social capabilities mean that we are well positioned for future growth.