Gen Expands Financial Wellness Portfolio with MoneyLion Acquisition
Deal News | Dec 10, 2024 | Edison Partners LP
Gen Digital Inc., a leader in digital security solutions, has announced a significant expansion into consumer finance with its acquisition of MoneyLion Inc. The deal, valued at approximately $1 billion, represents Gen's strategic effort to broaden its offerings beyond privacy and cybersecurity to include comprehensive financial wellness services. MoneyLion, known for its robust fintech platform, will provide Gen with enhanced capabilities in credit management and financial decision-making tools. This move is expected to diversify Gen's customer base and offer new avenues for growth by leveraging MoneyLion's technology and over 18 million-strong user base. The transaction, unanimously approved by both parties' boards and expected to close in the first half of FY 2026, will be accretive to Gen's EPS. The financial advisors for the transaction include Evercore for Gen and Keefe, Bruyette & Woods, Inc. for MoneyLion. Investors and stakeholders are urged to review related documents as regulatory approvals are pursued.
Sectors
- Financial Technology (Fintech)
- Cybersecurity
Geography
- United States – Both Gen Digital Inc. and MoneyLion Inc. are based in the United States, and the deal primarily affects their operations and expansions within this country.
Industry
- Financial Technology (Fintech) – MoneyLion operates within the fintech sector, providing consumer finance solutions and digital ecosystems that enhance financial decision-making.
- Cybersecurity – Gen Digital is renowned for its cybersecurity solutions, which it aims to integrate with MoneyLion's financial services platform.
Financials
- Approximately $1 billion – The total cash value of the acquisition of MoneyLion by Gen Digital.
- $82.00 per share – The cash value offered by Gen for each MoneyLion share as part of the acquisition.
- Contingent value right of $23.00 – A possible additional payment in Gen shares, contingent upon achieving a set share price milestone.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Gen Digital Inc. | Bidding Company | Company | A global leader in cybersecurity and digital freedom solutions, expanding its portfolio through financial wellness acquisitions. |
| MoneyLion Inc. | Target Company | Company | A leading fintech platform providing consumer finance solutions, acquired by Gen Digital to enhance financial management capabilities. |
| Evercore | Financial Advisor to Gen | Company | An investment banking advisory firm advising Gen Digital on its acquisition of MoneyLion. |
| Kirkland & Ellis LLP | Legal Advisor to Gen | Company | Providing legal counsel to Gen Digital in the acquisition. |
| Keefe, Bruyette & Woods, Inc. | Financial Advisor to MoneyLion | Company | A financial services firm advising MoneyLion on the transaction. |
| Davis Polk & Wardwell LLP | Legal Advisor to MoneyLion | Company | Legal counsel for MoneyLion in the acquisition process. |