The Latest News on the Economy

Acorns prepare to enter Wall Street.

Acorns plans to merge with Pioneer Merger, a non-operating company.

According to a statement Thursday, the Acorns app, which offers savings and investment solutions to its users, is preparing to enter Wall Street at a valuation of around $ 2.2 billion.

Acorns plans to merge with Pioneer Merger, a SPAC, i.e., a company without commercial activity, but already listed with the sole aim of clinging to a company wishing to go public without all the obligations of a traditional IPO.

Investment firms Wellington Management, Greycroft, TPG and BlackRock, have pledged to provide funds.

Launched in late 2014, the application offers a subscription ranging from $ 1 to $ 5 per month to help its users save and invest their money, including through automated solutions.

It claims 4 million customers with the ambition to reach 10 million by 2025.

The merger with Pioneer Merger is expected to be finalized in the second half of the year. The new company will then be listed on the Nasdaq under the symbol “OAKS”.

PSPCs became popular in financial markets last year before exploding earlier this year.

According to Spac Research, 83 billion dollars were raised in 2020 and more than 100 billion dollars since January.

But the US Stock Exchange Constable, the SEC, recently stepped up warnings against such transactions, and their number has fallen sharply since April.

Another popular financial app, Robinhood, is also gearing up for Wall Street. According to Bloomberg, who cites sources familiar with the matter, the company wants to complete the transaction by the end of June.

Leave a Reply

Your email address will not be published. Required fields are marked *