Upon closing of the deal, the combined entity will have an estimated post-transaction enterprise value of $2.4bn with an estimated equity value of $2.9bn
US-based digital financial platform MoneyLion has agreed to merge with Fusion Acquisition (Fusion), a special purpose acquisition company, to become a publicly listed company.
Fusion is established for effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation or similar business combination with one or more businesses.
MoneyLion is engaged in providing a data-driven, digital financial platform that offers a complete suite of products, to enables its members bank, borrow, save, invest, and grow, all through a single smartphone app.
The company’s digital financial platform offers products including RoarMoney, Investing, Instacash, Credit Builder Plus.
In addition to the suite of financial products, the company also offers Financial Heartbeat, an intelligent, automated advice platform helps members in their financial journey.
Financial Heartbeat evaluates members’ financial situation across four key dimensions and delivers personalised advice that helps them decide what actions to take and which products to use to improve their financial health.
MoneyLion intends to use the net proceeds from the transaction to support its working capital and scale its digital platform and suite of products.
Upon closing of the merger, the combined company will have an estimated post-transaction enterprise value of $2.4bn with an estimated equity value of $2.9bn.
The transaction proceeds include up to $350m of cash held in Fusion’s trust account and an additional $250m fully committed private investment at a price of $10 per share.
The private investment will be led by funds and accounts managed by BlackRock, certain funds managed by affiliates of Apollo Global Management, and global investors.
Fusion 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.
“We look forward to partnering with the company’s highly experienced team of technologists and financial product experts to accelerate growth post-merger.”
The merger has been unanimously approved by the boards of directors of both parties and is expected to close in the first half of 2021, subject to regulatory and stockholder approvals, and other customary closing conditions.
Once the transaction is closed, Fusion will be renamed MoneyLion and is expected to remain listed on the New York Stock Exchange.
MoneyLion CEO and co-founder Dee Choubey said: “MoneyLion is a digital financial platform on a mission to rewire a broken banking system that applies a one-size-fits-all approach to personal finance.
“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.”