Following our exclusive report from yesterday that Retail FX broker eToro was headed to the public markets at a $10 billion valuation via a merger with a special purpose acquisition company (SPAC), FNG has learned that the SPAC with which eToro will combine is Fintech Acquisition Corp V (NASDAQ:FTCVU).

Fintech Acquisition Corp V went public as a SPAC in December 2020, raising $250 million in cash. The company will seek to raise another $600-700 million to facilitate the deal. The remainder of the $10 billion consideration will come as new FTCVU shares to be issued to eToro’s shareholders.

FTCVU shares reacted to news of the (still potential) combination with eToro, trading up by 25% to hit $14.00 in after hours market trading late Monday / early Tuesday.

Fintech Acquisition Corp V, as its name implies, is the fifth in a series of SPACs issued by a group led by Betsy Cohen, founder of Jefferson Bank and The Bancorp, and one of the most respected women in US finance and commercial banking. Another SPAC issued by Betsy Cohen’s group, FTAC Olympus Acquisition, is in process of merging with another successful Israel-based fintech company, payments specialist Payoneer in a $3.3 billion deal. Fintech Acquisition Corp IV is being used to take public iconic investment banking firm Perella Weinberg Partners at about a $1 billion valuation.

As the transaction will require additional financing to leverage Fintech Acquisition Corp V’s $250 million in cash into a $10 billion acquisition, the expected timing on formally announcing a transaction is likely in the 1-2 week time frame, as per our report from yesterday.

We will continue to cover this story as it develops. Stay tuned to FNG…