Gen Digital has officially entered into an agreement to acquire MoneyLion, a personal finance management platform, in a transaction valued at $1 billion. This strategic move is designed to bolster Gen's offerings in credit and identity protection solutions. The acquisition will see Gen Digital paying $82 per share in cash, with MoneyLion shareholders additionally eligible to receive a right to payment of $23 in the form of Gen's stock, provided that the average price of Gen's shares reaches $37.50 over a predetermined period. In response to the news, shares of Gen Digital fell by 2.4%, while MoneyLion's stock surged by 15%.
Notably, Gen Digital's portfolio encompasses well-known consumer brands such as Norton antivirus, LifeLock identity theft protection, and ReputationDefender online reputation management. Chief Executive Vincent Pilette of Gen remarked, "By bringing MoneyLion into the Gen family, we're not only helping people protect what they already have, we're extending our capabilities to enable people to better manage and grow their financial wealth." With MoneyLion boasting over 18 million customers, Gen expects to diversify its customer base significantly, thus expanding its marketing capabilities in credit and identity protection. This acquisition is expected to finalize in the first half of Gen's fiscal 2026.
Gen Digital has reaffirmed its fiscal 2025 revenue guidance, projecting figures between $3.91 billion and $3.93 billion, alongside adjusted earnings per share estimates in the range of $2.18 to $2.23. Analysts anticipate revenues of approximately $3.92 billion for the current fiscal year, with adjusted EPS of $2.21. The transaction is set to enhance Gen's non-GAAP earnings per share upon its completion.
Dee Choubey, Chief Executive of MoneyLion, added, "We'll deliver MoneyLion's leading personal financial management tools and embedded financial marketplaces to Gen's users while bringing Gen's strong identity, trust and cybersecurity solutions to our customers.".