Fintech startup Acorns Grow Inc. will merge with special-purpose acquisition company Pioneer Merger Corp. to go public, the WSJ reported.

  • The deal values Acorns at $2.2 billion. The firm had $4.74 billion assets under management as of May.
  • Pioneer will invest $400 million in cash while another $165 million will come from private investment in public equity investors.
  • PIPE investors include BlackRock Inc., and Wellington Management Co.
  • Chief Executive Noah Kerener plans to support a program that gives Acorns shares to its clients, by contributing 10% of his own holdings.
  • The fintech forecasts revenue to hit $126 million this year and $309 million in 2023 versus the $71 million in 2020.
  • The firm projects its subscriber base to breach 8 million by 2023.
  • Existing investors in Acorns include PayPal Holdings Inc., NBCUniversal, and celebrities such as Jennifer Lopez and Dwayne “The Rock” Johnson.

PACX: Nasdaq is up 1.85%; BLK: NYSE is up 0.21%; while PYPL: Nasdaq is down 0.84%.

Tags: Acorns Grow