Acorns Grow, the saving and investing app, said Thursday it would go public by merging with the Pioneer Merger PACK special-purpose-acquisition company.
The combined entity is valued at $2.2 billion, the companies said.
Institutional investors participating in the deal include Wellington Management, Senator, Declaration Partners, Greycroft, Rise Fund, TPG's global-impact-investing platform, and funds and accounts managed by BlackRock. (BLK) - Get Report
Acorns Grow, Irvine, Calif., says it’s the largest subscription service in U.S. consumer finance, with 4 million subscribers.
The company says it aims “to help everyday Americans responsibly manage their money for the long term,” offering tools for education, investing, banking and earning.
The transaction is expected to close in the second half. The combined company will be named Acorns Holdings and will trade on Nasdaq with the ticker symbol OAKS. Acorns Chief Executive Noah Kerner will continue in his post.
Kerner plans to contribute 10% of his personal ownership in Acorns to a fund giving shares to eligible customers. Pioneer's sponsor plans to do the same thing.
In March, TurboTax wrote a primer on TheStreet.com about how investors can utilize Acorns.
“As a beginning investor, you should consider investing in tax-favored retirement accounts.”
In January, TurboTax offered another piece on TheStreet.com about the tax implications of investing on Acorns.
The issues addressed include “What kind of investment records should I keep?”, “How are my capital gains taxed?”, and “What is the difference between a short term and long term capital gain?”
At last check Pioneer Merger shares were 3.5% higher at $10.09.