Last week, Gen Digital (NASDAQ: GEN) announced that it would acquire MoneyLion (NYSE: ML) for around $1 billion. Gen Digital is a software firm in the cyber sector with a market cap of around $18.26 billion.
A neobank, MoneyLion, went public in a SPAC deal in September 2021. At that time, MoneyLion was valued at around $2.4 billion. When the deal closed, shares in MoneyLion traded around $300/each. In the ensuing months, the valuation plummeted to under $20. Today, following the acquisition news, MoneyLion is trading at around $80 to $90/share. The Board of Directors of both Gen and MoneyLion approved the acquisition of MoneyLion by Gen for $82.00 per share in cash payable at closing.
MoneyLion shareholders may also receive at closing one contingent value right (CVR) that entitles the shareholder to a contingent payment of $23.00 in the form of shares of Gen Digital common stock (issuable based on an assumed share price of $30.48 per Gen share) if Gen’s average volume-weighted average share price reaches at least $37.50 per share over 30 consecutive trading days from December 10, 2024, until 24 months after close. There is no guarantee this will happen.
Dee Choubey, co-founder and CEO of MoneyLion, said they will deliver financial management tools to Gen Digital’s customers while incorporating the company’s cybersecurity solutions for their customers.
MoneyLion’s Q3 earnings, announced last month, reported revenue of $135 million and a net loss of $2.8 million after taxes. Compared to Q3 2023, this was an improvement as the net loss was $4.11 million.
At that time, MoneyLion raised their full-year 2024 guidance, now expecting revenue of $536 million to $541 million and Adjusted EBITDA of $88 to $93 million. For Q4 of 2024, they expect revenue of $149 to $154 million and Adjusted EBITDA of $22 to $27 million.
Total Customers grew 54% year-over-year to 18.7 million in the third quarter of 2024. Total originations grew 38% year-over-year to $776 million for the third quarter of 2024.
