Israel’s eToro to go public through $10.4 billion SPAC deal backed by SoftBank, others – Reuters

Israel’s eToro to go public through $10.4 billion SPAC deal backed by SoftBank, others – Reuters

(Reuters) - Online stock brokerage eToro said on Tuesday it will go public through a merger with a blank-check firm backed by banking entrepreneur Betsy Cohen in a $10.4 billion deal, with investment from SoftBank's Vision Fund 2.EToro competes with Robinhood, which has become hugely popular with young investors for its easy-to-use interface. Robinhood has emerged as a gateway for amateur traders challenging Wall Street hedge funds.The deal with FinTech Acquisition Corp V, a special purpose acquisition company, will include a $650 investment from investors including Fidelity Management & Research Co LLC and Wellington Management.Founded in 2007, eToro has 20 million registered users who can manually invest in cryptocurrencies, stocks, commodities and more, while those who lack time or experience can automatically copy the trades of others on the platform.Special purpose acquisition companies, or SPACs, are shell companies that use proceeds from an IPO to take private firms public. FinTech Acquisition Corp V's shares jumped more than 15% before the bell.Cohen, who founded Jefferson Bank and Bancorp Inc, is one of the prominent businesswomen who have joined the SPAC frenzy.EToro joins a wave of Israeli tech companies and startups including mobile gaming company Playtika Holding Corp, that are going public