MoneyLion to go public via $2.4bn merger with Fusion Acquisition

MoneyLion, a US-based fintech company, has agreed to merge with Fusion Acquisition Corp., a special purpose acquisition company, in a deal that values the combined company at $2.4 billion.

The deal will enable MoneyLion to become a publicly listed company, which will trade on the New York Stock Exchange.

MoneyLion helps Americans to control their finances and meet their objectives in life through a suite of products offered by its digital financial platform. The products of the fintech company are a mobile banking solution called RoarMoney, automated investing tools under the Investing solution, Instacash for interest-free salary advances, and Credit Builder Plus.

For personal financial management, MoneyLion has developed a product called Financial Heartbeat, which is an automated advice platform to help members on their financial journey.

By assessing members’ financial situation across four important dimensions, Financial Heartbeat provides customized advice to help them decide the actions to take and which products to use to boost their financial health.

MoneyLion to go public via $2.4bn merger with Fusion Acquisition. Photo courtesy of Tumisu from Pixabay.

Dee Choubey – CEO and co-founder of MoneyLion 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.”

Post-merger, the combined company will have an estimated equity value of $2.9 billion. This includes a contribution of up to $526 million in cash resulting from the deal, net debt paydown, and expenses.

The proceeds include up to $350 million of cash held in the trust account of Fusion Acquisition Corp. and an additional $250 million coming from a fully committed private investment at $10 per share led by funds and accounts managed by BlackRock, some funds managed by affiliates of Apollo Global Management, and certain global technology and growth investors.

MoneyLion’s shareholders will hold nearly 76% of the equity of the enlarged firm.

John James – Founder and CEO of Fusion Acquisition Corp. 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.”

The deal is likely to be wrapped up in the first half of this year, and will be subject to approvals from regulators and stockholders, and meeting of other customary closing conditions.