- Mobile banking platform MoneyLion has been acquired by identity protection and cybersecurity company Gen Digital Inc.
- The $1 billion deal is expected to close in 2025.
- Gen plans to diversify its offerings by integrating MoneyLion’s credit-building tools, financial management services, and embedded finance marketplace into its portfolio.
Mobile banking platform MoneyLion is the latest among a string of acquisitions taking place in fintech this month. The New York-based company has agreed to be acquired by Gen Digital Inc. (Gen), the parent company of a range of digital identity protection brands, for $1 billion.
Founded in 2013, MoneyLion offers both direct-to-consumer banking tools as well as a marketplace of embedded banking tools, called Engine, for businesses. This enterprise technology suite serves as a marketplace for financial products to enable financial services and non-financial services companies alike to add embedded finance to their business leveraging MoneyLion’s API.
Gen expects today’s $1 billion purchase will help it branch out from identity solutions into new financial services verticals. Specifically, Gen is seeking to add financial wellness offerings using MoneyLion’s credit building and financial management services, as well as its white-labeled AI recommendation platform. Gen will also acquire MoneyLion’s 18+ million customers, a group which Gen anticipates will diversify its existing client base.
“Gen has a family of consumer brands that’s dedicated to protecting people’s privacy, identity, and financial assets so they can live their digital lives securely and without worry,” said Gen CEO Vincent Pilette. “By bringing MoneyLion into the Gen family, we’re not only helping people protect what they already have, we’re extending our capabilities to enable people to better manage and grow their financial wealth. We look forward to welcoming the MoneyLion team, so together, we can power digital and financial freedom.”
Gen was founded in 2022 and counts Norton, Avast, LifeLock, Avira, AVG, ReputationDefender, and CCleaner among its consumer brands. In all, Gen’s brands help bring cybersecurity, online privacy, and identity protection tools to almost 500 million users in more than 150 countries. The Arizona-based company is publicly listed on the NASDAQ with a market capitalization of $18.3 billion.
The deal is expected to close in the first half of Gen’s fiscal year, spanning April 2025 to late September 2025. The transaction is proposed at $82 per share, plus one contingent value right (“CVR”) that entitles the holder to a contingent payment of $23 for each MoneyLion share in the form of shares of Gen common stock.
“We’ll deliver MoneyLion’s leading personal financial management tools and embedded financial marketplaces to Gen’s users while bringing Gen’s strong identity, trust and cybersecurity solutions to our customers,” said MoneyLion Co-Founder and CEO Dee Choubey. “Together, we’ll create unmatched consumer value, combining innovative fintech products and experiences with Gen’s trusted network to empower smarter financial decisions and secure people’s digital and financial lives.”
Gen’s purchase of MoneyLion is notable because it is unique. It may be the first time a fraud and security firm has acquired a digital bank– generally, it would be the other way around. However, given the increasing overlap between financial services and cybersecurity, this acquisition is a logical one. As security threats become more sophisticated, the integration of financial wellness tools with identity and security solutions positions Gen to address consumer needs more holistically.
Photo by cottonbro studio
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