Acorns, the popular financial wellness app, has announced its acquisition of GoHenry a kid-focused fintech company.
GoHenry, founded in 2012, offers a debit card and financial education app for kids aged six to 18. Parents can use the app to set spending limits and monitor their children's purchases, helping to teach them financial responsibility and independence. The all-stock deal will allow Acorns to incorporate GoHenry's expertise in family financial management into its platform, offering its users a more comprehensive suite of services.
The acquisition has been in the works since 2021. Acorn reviewed over 100 deals around the world before channeling a $55 million investment into GoHenry in 2022, building their relationship before the deal was solidified.
The move is part of Acorns' expansion into a Europe market, where GoHenry has a significant presence. UK-based GoHenry currently serves over 1 million families and has grown enormously in recent years. They also serve markets in France, Spain, and the United States (US). With this move, GoHenry will become a full subsidiary of Acorns. GoHenry employees will roll over their equity into Acorns.
"GoHenry's deep understanding of family finance aligns perfectly with Acorns' mission to make financial wellness more accessible and affordable for everyone," Acorns Chief Executive Officer (CEO) Noah Kerner said in a statement. Acorns was valued at more than $1.9 billion after a $300 million round of funding in 2022.
The acquisition is also part of Acorns' broader strategy to expand its offerings beyond investment management. In recent years, the company has added features such as a retirement account and a debit card to its platform, positioning itself as a one-stop shop for financial wellness. The acquisition of GoHenry will allow Acorns to further enhance its offerings for families, a key demographic for the company. Both Acorn and GoHenry charge a monthly subscription rate.