Mobile banking platform MoneyLion will launch publicly, following the merger with blank check company Fusion Acquisition.
Following the merge, the combined company will have a post-transaction valuation of $2.4bn and a $2.9bn equity value from the contribution of up to $526m in cash proceeds from the transaction, net of debt paydown and expenses.
Proceeds will consist of up to $350m cash held in Fusion’s trust account and $250m in a fully committed private investment from accounts managed by BlackRock, certain funds managed by affiliates of Apollo Global Management and others.
These proceeds will provide MoneyLion with working capital and help it build on its product suite.
MoneyLion shareholders will hold around 76% of the equity of the combined company.
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.
“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. We look forward to partnering with the Company’s highly experienced team of technologists and financial product experts to accelerate growth post-merger.”
MoneyLion offers a data-driven mobile banking platform that enables users to borrow, save, invest and grow their money from a single app.
One of its features allows members to get paid up to two days early and help with their daily spending. As for investing, users can access automated investing tools, which can back a number of opportunities, including ESG portfolios.
The company aims to serve 100 million middle-class Americans.
During 2021, the FinTech hopes to deploy new products, including a credit and financing product, and a crypto rewards offering.
MoneyLion claims it generated $76m of adjusted revenue in 2020, finishing the year on $102m adjusted revenue run-rate.
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