Investing app Acorns has acquired a challenger bank for Generation Z.
On Monday, Acorns, which has digital banking features along with investing capabilities, announced an equity deal for GoHenry and its European arm Pixpay, a fintech with a similar mission to GoHenry that it acquired in 2022. GoHenry originated in the United Kingdom in 2012 before expanding to the U.S.
The acquisition grants Acorns a foothold in the U.K., France, Spain and Italy. Together, Acorns and GoHenry have nearly six million subscribers.
“GoHenry’s mission-driven approach is perfectly aligned with Acorns, which we expect will help us accelerate our roadmap and deliver financial wellness to the whole family through all of life’s stages,” said Noah Kerner, CEO of Acorns, in a press release.
GoHenry will remain an independent brand but will be renamed GoHenry by Acorns in the U.S. It will retain its original GoHenry and Pixpay branding overseas. Acorns plans to bring the companies’ offerings together as part of a premium subscription tier for families. Acorns already has Acorns Early, an investing account that parents can seed for their kids.
“It’s business as usual for our team and customers in the U.K. and Europe [under Pixpay] with the added opportunities and global reach that this new strategic alignment will bring,” said Louise Hill, co-founder of GoHenry, in the release.
Acorns’ banking services are provided by the $1.8 billion-asset Lincoln Savings Bank in Reinbeck, Iowa, and the $1.1 billion-asset nbkc bank in Leawood, Kansas. GoHenry’s debit card in the U.S. is issued by Community Federal Savings Bank in Woodhaven, New York, which has $594 million of assets.
FT Partners served as the exclusive advisor to Acorns. An announcement that the investment bank released on April 3 states that the transaction is one of the largest ever private-to-private consumer fintech mergers. According to FT Partners, Acorns has raised more than $500 million in financing to date, while GoHenry has raised more than $100 million since its founding.