Paul Hastings LLP advised Acorns Grow Incorporated on the deal, while Kirkland & Ellis advised Pioneer Merger Corp.
Acorns, the largest subscription service in Consumer Finance, announced a business combination with Pioneer Merger Corp., a publicly traded special purpose acquisition company. The combined company will continue as a publicly listed entity and have an expected pro-forma fully-diluted equity value of approximately $2.2 billion.
Institutional investors including Wellington Management, Senator, Declaration Partners, Greycroft, The Rise Fund, TPG’s global impact investing platform, and funds and accounts managed by BlackRock have participated in the oversubscribed, upsized PIPE, which was raised at $10.00 per share.
The transaction is expected to close in the second half of 2021, subject to customary closing conditions. Upon completion, the company will operate as Acorns Holdings, Inc., and will be a publicly traded company on the Nasdaq Capital Market under the ticker symbol “OAKS.”
The Paul Hastings team that advised Acorns was led by partner Carl Sanchez (Picture) on M&A and Christopher Austin on Securities and Capital Markets. The rest of the team included partner Stephen Harris; and associates Joseph Swanson, Susannah Nagle, Philip Cernera, Taylor Montgomery, and Christine Geils.
Kirkland & Ellis advised Pioneer Merger Corp. with a team led by corporate partner Marshall Shaffer and capital markets partner Christian Nagler and included corporate partner Eric Schiele as well as special situations associate Alexander Cushman, corporate associates Peter Fritz, Brandon Nesfield and Jay Pak, and capital markets associates Anthony Zangrillo, Beth Palkovic and Siqi Li.
Involved fees earner: Alexander Cushman – Kirkland & Ellis; Peter Fritz – Kirkland & Ellis; Christian Nagler – Kirkland & Ellis; Brandon Nesfield – Kirkland & Ellis; Beth Palkovic – Kirkland & Ellis; Eric Schiele – Kirkland & Ellis; Marshall Shaffer – Kirkland & Ellis; Anthony Zangrillo – Kirkland & Ellis; Christopher Austin – Paul Hastings LLP; Stephen Harris – Paul Hastings LLP; Susannah Nagle – Paul Hastings LLP; Carl Sanchez – Paul Hastings LLP; Joseph Swanson – Paul Hastings LLP;