The merger with Pioneer Merger Corp., which almost triples the fintech’s last private valuation of $860 million in 2019, is set to close in H2, per CNBC. Launched in 2014, Acorns lets users round up transactions from a linked credit or debit card and transfer the change into exchange-traded funds (ETFs) that the app manages. Acorns also offers individual retirement accounts and a checking account with a debit card. An Acorns subscription runs between $1 and $5 monthly, depending on the number of features.
The SPAC deal will help Acorns capture the retail investing tailwind.
Momentum is building for investing apps to go public after record Q1 exits. Sixty-seven fintechs engaged in M&A deals, including SPACs, in Q1 2021, compared with 50 in Q1 last year, per Insider Intelligence. Several investing apps went public via SPACs, including MoneyLion, Bakkt, and eToro. Acorns’ announcement corroborates our earlier analysis that more fintechs will take this route in 2021. Acorns’ competitors Betterment and Wealthfront, which also had record-breaking Q1s, could be next as they have been touted as prime acquisition targets.