Daily Management Review

US fintech start-up Acorns to go public via $2.2B SPAC merger


US fintech start-up Acorns has announced that it will go public via a merger with a specialist target mergers and acquisitions (SPAC) company.

US fintech start-up Acorns to go public via $2.2B SPAC merger
Acorns has already reached an agreement with SPAC Pioneer Merger Corp. for $2.2 billion. The deal is expected to close in the second half of the year, after which Acorns shares will trade on the NASDAQ exchange under the ticker OAKS.

Acorns was established in California in 2014. The company was created as a savings app, but now specialises primarily in micro- and robo-investing. 

Its users allocate small amounts that they are willing to invest, and then a robotic assistant decides exactly where to invest them. In its last funding round, Acorns was worth $1.1bn.

Acorns was yet another company that decided to go public not through a traditional IPO, but through a merger with SPAC. According to SPAC Research, in total such companies have raised more than $100bn in the US since the start of the year, although interest in SPACs has waned since April after a surge in popularity at the start of the year.

source: bloomberg.com