Acorns heads for public listing with valuation of $2.2 billion
Saving and investing app, Acorns Grow Incorporated, has announced it has entered into an agreement with Nasdaq-listed Pioneer Merger Corporation, a publicly traded special purpose acquisition company.
This will create a combined company that will continue as a publicly listed entity and have an expected proforma fully-diluted equity value of approximately $2.2 billion.
Participating institutional investors include Wellington Management, Senator, Declaration Partners, Greycroft, The Rise Fund, TPG’s global impact investing platform, and funds and accounts managed by Black Rock.
The Irvine, California-based Acorns claims to be the largest subscription service in US consumer finance, with more than four million subscribers, having doubled since 2019.
The fintech says the public listing will accelerate its growth plans.
Noah Kerner, CEO of Acorns, says “We are putting the tools of wealth making in everyone’s hands and making it possible for everyday consumers to responsibly manage their money over the long-term.”
The transaction is expected to close in the second half of 2021.
Acorns was launched in 2014 and offers three membership levels:
- Lite ($1 per month) which includes basic investing, education, and earning tools;
- Personal ($3/month) which adds retirement, banking, and smart deposit tools;
- Family ($5/month) which includes all individual products plus Acorns Early-investing, education, rewards, and gifting for the family.