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Acorns to go Public: WSJ

Acorns Grow Inc., an Irvine-based fintech started by local entrepreneurs Walter Cruttenden and son Jeff Cruttenden, plans to go public through a merger with a blank-check company in a deal that values the investment app at about $2.2 billion, the Wall Street Journal reported.

Acorns will combine with Pioneer Merger Corp. (Nasdaq: PACX), a special-purpose acquisition company affiliated with the hedge funds Falcon Edge Capital and Patriot Global Management, the paper said.

Acorns has accumulated $4.74 billion in assets under management with 4 million subscribers who pay anywhere from $1 to $5 a month.  

It expects $126 million in revenue this year and $309 million in 2023, up from $71 million in 2020, the paper said. Acorns is also predicting more than 8 million subscribers by 2023.

Pioneer will contribute about $400 million in cash, with another $165 million coming from a related private placement involving funds managed by BlackRock Inc., which has invested in Acorns, and other investors.

Shares of Pioneer rose 2.3% to $9.97 and a $503 million market cap.

Peter J. Brennan
Peter J. Brennan
Peter J. Brennan has been a journalist for 40 years. He spent a decade in Latin America covering wars, narcotic traffickers, earthquakes, and business. His resume includes 15 years at Bloomberg News where his headlines and articles sometimes moved the market caps of companies he covered by hundreds of millions of dollars. His articles have been published worldwide, including the New York Times and the Washington Post; he's appeared on CNN, CBC, BBC, and Bloomberg TV. He was awarded a Kiplinger Fellowship at The Ohio State University.
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