- Acorns, the investment app that allows users to invest spare change from daily transactions, is going public.
- The fintech company will merge with a SPAC in a deal that is expected to value Acorns at $2.2 billion.
- Acorns' 4 million subscribers have nearly $10 billion in assets on the investment platform.
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Acorns, the personal finance app that automates investments and allows its users to invest spare change from daily transactions into the stock market, is going public.
The fintech company announced plans to merge with SPAC Pioneer Merger Corp. in a deal that will value the company at about $2.2 billion.
The deal will bolster Acorn's cash position to more than $450 million and enable it to accelerate growth, according to the company.
Acorns was founded in 2012 and has more than 4 million "everyday American subscribers" on its platform. The company expects that number to grow to 10 million by 2025. Its press release on Thursday said Acorns users have saved and invested over $9.6 billion.
Institutional investors who are behind the SPAC merger include Wellington Management, TPG, and funds and accounts managed by BlackRock.
As part of the SPAC merger, several insiders plan to contribute a share of their personal ownership in Acorns to fund a program giving shares to eligible customers.
"We intent to introduce our share rewards program that will allow eligible customers to own a piece of the company and an even greater piece as they invite others to start the path toward financial wellness," Acorns CEO Noah Kerner said.
The transaction is expected to close in the second half of 2021. Acorns will trade under the ticker symbol "OAKS" on the Nasdaq.
Shares of Pioneer Merger Corp. traded up about 3% in Thursday morning trades following the news.