The merger will enable MoneyLion to become a publicly listed company
MoneyLion, a US digital financial platform, has agreed to merge with blank-cheque company Fusion Acquisition in a deal that values the combined entity at $2.4bn.
The merger will pave the way for the fintech company in becoming public by trading on the New York Stock Exchange.
Post-merger, the enlarged MoneyLion is expected to have an equity value of $2.9bn. This is inclusive of a contribution of up to $526m in cash proceeds from the deal, net debt paydown, and also expenses.
The proceeds comprise up to $350m of cash held in Fusion Acquisition’s trust account and a further $250m injected by a fully committed private investment at $10 per share.
The private investment is led by funds and accounts managed by BlackRock, certain funds managed by Apollo Global Management’s affiliates, and some global technology and growth investors.
The company will use the net proceeds raised from the deal for supporting its working capital and scale its platform and suite of products.
The original shareholders of MoneyLion will hold around 76% of the equity of the enlarged firm.
Fusion Acquisition founder and CEO John James said: “MoneyLion is at the perfect high-growth inflection point that makes accessing public markets a logical next step.
“This will be the first publicly traded all-in-one digital financial services platform, which in and of itself creates huge scarcity value for the company.
“Unlike its peers, MoneyLion has purpose-built its technology and operates a holistic platform with multiple products and revenue streams with strong unit economics.
“We believe in today’s market there are limited opportunities to invest in high-growth businesses built for profitability like MoneyLion.”
MoneyLion’s products are said to help Americans in handling their finances and meet their life goals.
The products offered on its digital financial platform include RoarMoney, a mobile banking solution, automated investing tools, interest-free salary advance solution Instacash, and Credit Builder Plus, which is a credit building or re-building programme.
The company has also developed Financial Heartbeat, an automated advice platform that helps in personal financial management.
Financial Heartbeat assesses the financial situation of members across four key dimensions before giving personalised advice to help them determine the steps to take and which products to try for enhancing their financial health.
MoneyLion CEO and co-founder Dee Choubey said: “We are using transformative technology to bring the private banking experience to everyone – in a single app.
“Our platform surrounds each customer with the financial tools, content, and actionable advice relevant to their unique situation.
“This model is generating high user growth, multiple product engagement, and low cost of acquisition.
“A public listing enhances our ability to scale more quickly and continue to innovate so that we can help more people take control of their finances and achieve their life goals.”
Subject to regulatory and stockholders’ approvals and other customary closing conditions, the merger is expected to close in the first half of 2021.