eToro, with a vision of expanding capital markets, was established in 2007. The social investment network provides users the option of assets to invest in and how to invest, ranging from non-commercial fractional shares to crypto assets. Users can directly trade, invest in a smart portfolio or replicate a popular investing plan on the platform with the click of the button, at no additional cost.
In 2020 eToro increased its registered users by more than 5 million and produced gross sales of $605 million, an annual increase of 147 percent. In 2021 momentum is accelerating as the global markets are exploring a new wave of investors. In 2019, averaging 192,000 monthly registrations. In 2020, this increased to 440,000, and eToro added to the social network in January 2021 alone over 1 million new registered users. In 2019, eToro performed on average eight million businesses per month. This figure increased to 27 million in 2020, and eToro alone saw over 75 million traders on the eToro platform in January 2021.
eToro currently has 20 million registered users, with its wider, increasing global addressable market, supporting secular developments such as digital wealth network growth and the increase in retail engagement, rapidly developing its social culture. eToro has also become one of the first controlled crypto-asset platforms and is well placed to take advantage of crypto-common adoption.
Business combination highlights
The Company is expected to have an estimated implied equity value of approximately $10.4 billion at closing, reflecting an implied enterprise value for eToro of approximately $9.6 billion. The transaction includes $250 million in gross proceeds from FinTech V’s cash in trust (assuming no redemptions) and $650 million in gross proceeds from a fully committed private placement in public equity (“PIPE”) at $10.00 per share from various strategic and institutional investors, including ION Investment Group, Softbank Vision Fund 2, Third Point LLC, Fidelity Management & Research Company LLC, and Wellington Management, that will close concurrently with the business combination. The Company is expected to have approximately $800 million net cash on its balance sheet to support future growth.
The existing eToro shareholders and their new investors and staff will remain, immediately after the merger, the major investors in the merged company with about 91% of ownership (when no FinTech V shareholders’ redemptions).
The company merger, authorized by both eToro and Fintech V Boards of Directors unanimously, aims at concluding the business during the third quarter of 2021 subject to inventory approvals and other usual closing terms.
eToro is a multi-asset investment platform that enables people in a global group of active investors to build their expertise and wealth. eToro was created in 2007 with the aim of opening up global market opportunities for all to trade and invest in a straightforward and transparent manner. Today, eToro is a global group of over 20 million registered users who share investment ideas, and everyone can follow the approaches of successful people. The flexibility of the platform makes it easy for users to purchase, keep and sell properties, track their portfolio in real-time and deal when they want to.