Investing app Acorns acquires kid-focused fintech GoHenry to expand in Europe

cnbc.com:

LONDON — American micro-investing platform Acorns acquired GoHenry, a digital banking startup focused on educating kids about money, for an undisclosed sum.

The company told CNBC exclusively that it agreed an all-stock deal with GoHenry that will see the firm become a wholly owned subsidiary of Acorns, with employees and backers of GoHenry rolling over their equity.

Founded in 2012, GoHenry offers a spending card for children aged six to 18, linked to an accompanying money management app. Parents can track their kids' transactions in real time and set spending limits or savings goals.

The deal's timing is noteworthy. The fintech sector is enduring a tough environment characterized by high inflation and rising interest rates. That's dented sentiment around the market, with many publicly-listed companies' share prices dropping. This has, in turn, had a knock-on effect for privately-held fintechs, with many late-stage firms seeing their valuations drop sharply.

However, Noah Kerner, Acorns' CEO and co-founder, insisted market conditions had no effect on the timing of the acquisition as talks between the two companies started as early as 2021.

Acorns' interest in financial wellbeing for families «goes back many years,» he said, starting in 2020 with the launch of Acorns Early — an investment account for kids.

Acorns looked at more than 100 deals globally before landing on GoHenry, Kerner said, adding a $55 million cash infusion into GoHenry last year and its buyout of rival firm PixPay in France made the deal more attractive.

«We pioneered kids and teens with GoHenry, and Acorns very much pioneered investing and saving and bringing mental wellness to the up and coming, to everyday America,» Louise Hill, co-founder and chief