MoneyLion to acquire Even Financial

Engine by MoneyLion (Even Financial), the MassMutual-backed company that enables other companies to plug into a network of financial services offers for the benefit of their customers, is being acquired by MoneyLion.

MoneyLion will pay a total purchase price of up to $440 million to acquire Even, using a convertible financing structure that values MoneyLion at its initial public listing price of $10 per share, comprised of:

  • A $360 million upfront payment comprised of $15 million in cash and $345 million in preferred shares that are convertible into 34.5 million MoneyLion common shares at $10 per share.
  • Subject to the successful achievement of certain revenue targets, a potential earn-out of up to $80 million, payable up to 8 million in preferred shares valued at $10 per share.
  • Unconverted preferred shares carry a 3% annual dividend payable in common equity or cash, at MoneyLion’s discretion.
  • Even employees will be subject to a lock-up of 12 months following closing of the transaction; all other Even shareholders will be subject to a lock-up until March 22, 2022.

Founded in 2014, Even connects consumers with financial product recommendations from banks, insurance, and fintech companies on mobile apps, websites, and other consumer touchpoints through its marketplace technology. The company’s network includes over 400 financial institution partners such as Haven Life, Lincoln Financial, Bestow, and others. Even raised $67 million and last year it acquired digital life insurance agency LeapLife.

“Combining Even’s best-in-class recommendation engine with MoneyLion’s powerful first-party products and open architecture marketplace expands the range of products and services available within our platform, while delivering a new distribution channel for Even’s financial partners. Together, we can accelerate our mission of providing financial access and advice to hardworking Americans, reaching them where they are, and enabling them to make financial progress regardless of where they are in life.” – Dee Choubey, co-founder and CEO of MoneyLion.

“At Even, our vision is to use machine learning to reimagine how financial institutions find and connect with consumers, while providing them with a superb and trusted user experience. By integrating Even’s powerful infrastructure technology with MoneyLion’s platform, we will be able to power their fast-growing Marketplace and provide consumers with the optimal mix of financial solutions for their needs, while greatly extending distribution for MoneyLion’s suite of products.” – Phillip Rosen, CEO and founder of Even.

Bottom Line: MoneyLion’s current price per share is not close to $10 so…