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MoneyLion said it expects the combined company, which will have
an enterprise value of $2.4 billion, to get $526 million in cash
proceeds.
The deal will be supported by a $250 million private investment
from funds and accounts managed by BlackRock, affiliates of
Apollo Global Management and others.
New York-based fintech company MoneyLion was founded in 2013 and
is led by co-founder and Chief Executive Officer Diwakar Choubey,
a Wall Street executive who has held senior positions at Goldman
Sachs Group Inc, Citadel and Barclays PLC.
The platform uses machine learning to provide its customers
access to small loans in addition to financial advisory and
investment services through its mobile app.
SPACs, or special purpose acquisition companies like Fusion,
raise money through an initial public offering (IPO) to acquire
a private company, which becomes public as a result of the
merger.
Online lending startup Social Finance Inc (SoFi) also agreed to
be taken public by a blank-check firm backed by venture capital
investor Chamath Palihapitiya in January at a $8.65 billion
valuation.
Such mergers have gained popularity over the past year since it
allows companies, which are looking to go public, to bypass the
meticulous scrutiny involved in an IPO and also offers more
stability in terms of valuation.
(Reporting by Niket Nishant and Sohini Podder in Bengaluru;
Editing by Saumyadeb Chakrabarty and Shinjini Ganguli)
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