Acorns Grow Incorporated, a provider of a saving and investing app, entered into a business combination agreement with Pioneer Merger Corp. (NASDAQ:PACX), a publicly traded special purpose acquisition company.
The deal is expected to close in the second half of 2021. Upon completion, the company will operate as Acorns Holdings, Inc. and is expected to trade under the symbol “OAKS” on the Nasdaq Capital Market (“Nasdaq”). The new Acorns will continue to be led by Noah Kerner, Chief Executive Officer, and the company’s management team.
As part of the merger, Kerner plans to contribute 10% of his personal ownership in Acorns to fund a novel program giving shares to eligible customers. Pioneer’s sponsor is also planning to give 10% of its ownership in Acorns to this same program.
The combined company will continue as a publicly listed entity and have an expected pro forma fully-diluted equity value of approximately $2.2 billion, assuming no redemptions. Institutional investors including Wellington Management, Senator, Declaration Partners, Greycroft, The Rise Fund, TPG’s global impact investing platform, and funds and accounts managed by BlackRock have participated. The oversubscribed, upsized PIPE was raised at $10.00 per share.
Led by Noah Kerner, CEO, Acorns is a U.S. consumer finance service used by 4+ million subscribers. It allows customers to automatically invest in a low-cost, diversified portfolio of exchange-traded funds offered by some of the world’s top asset managers (including Vanguard and BlackRock). Acorns uses smart portfolio algorithms to automatically work in the background.