FinTech Acquisition Corp.V and eToro Agrees to Cancel Merger Deal
- The contract termination being mutually consented to by both parties reflects a fair impact on both companies. Hence, there will be no termination fee required.
Renowned special purpose acquisition firm, FinTech Acquisition Corp. V in a mutual agreement with eToro, a global social investment platform, has decided to cancel its outstanding merger deal.
FinTech Acquisition Corp. V and eToro Calls Off Merger Deal
According to an announcement from the supposed partnering firms on Tuesday, the termination of the merger agreement saw consent from both companies and will take effect immediately.
FinTech Acquisition Corp. V is a popular special purpose acquisition company basically built to enter for merger purposes, the capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses, and more. More notably, the company has its eyes firmly fixed on the financial technology industry.
Meanwhile, eToro on the other hand is a global social investment network that is focused on empowering investors’ interest and users to grow their knowledge and wealth as part of a global community of successful investors. Founded in 2007, eToro is on a mission to enhance and improve the global markets in a way that will enable people to easily trade and invest in the stock market.
The deal, initiated during the first quarter of 2021 was made on certain closing terms which seem to have not been duly satisfied for the period it persisted. However, it appears that the parties’ decision to halt its long-existing merger deal was triggered by their failure to meet up with certain conditions binding the agreement.
Among the terms of FinTech Acquisition company and eToro was the agreement to relate the Company’s registration statement, within the timeframe outlined by the Merger Agreement and as extended by the Merger Agreement Amendment.
The parties’ efforts to meet up with this condition proved to no avail as it was not satisfied within the specified time frame. The partnering companies were unable to complete the transaction by the June 30, 2022 deadline.
Mutual Termination of Merger Agreement
The contract termination being mutually consented by both parties reflects a fair impact on both companies. As such, there will be no need for a party to pay the other a termination fee as disclosed in the announcement.
Per the announcement, the team behind the FinTech Acquisition firm expressed their disappointment on the failed merger agreement. They noted that the transaction has been rendered impracticable as the circumstances responsible for it are beyond the control of each of the parties.
However, the team acknowledged eToro’s outstanding market performance stating that it remains the leading global social investment platform, with a proven track record of growth and strong momentum..
Further information on the haltered Merger Deal will be made available in the report to be filed by FinTech V with the U.S. Securities and Exchange Commission.