IRVINE, Calif. & NEW YORK & LONDON, April 03, 2023-- Saving and investing application Acorns has announced its acquisition of GoHenry, a financial education firm, and its European arm. The acquisition will allow Acorns to expand into the European market, where GoHenry has already established itself as a popular youth banking app.
The acquisition will be an equity deal, giving Acorns a foothold in the UK and Europe. Acorns has been successful in the US, offering a simple, low-cost passive investing solution that is well-suited to new investors. The app's user interface and features have made investing more accessible to a broader audience.
GoHenry's focus on providing money management and financial education for children and teens aligns with Acorns' mission to help everyday people save and invest for their futures. The acquisition of GoHenry will give Acorns access to a younger demographic and help them establish a long-term relationship with their customers.
The acquisition is part of Acorns' strategy to expand its services globally. The company is known for its dollar-cost averaging investment strategy, which helps investors maximize their gains over time by regularly participating in the market. The app rounds up users' purchases to the nearest dollar and invests the difference in a portfolio of ETFs (exchange-traded funds).
Acorns aims to make investing as easy as possible for its users, with a simple sign-up process and a variety of portfolio options to suit different risk profiles. The app also offers a range of education resources to help users learn about investing and personal finance.
The acquisition of GoHenry will allow Acorns to tap into the growing trend of micro-investing and youth banking. The two companies share a vision of providing financial education and services to a wider audience, and the acquisition will help them achieve that goal.
Acorns has been successful in the US, with over 8 million users and $3 billion in assets under management. The company has raised over $200 million in funding from investors, including PayPal and BlackRock. The acquisition of GoHenry will help Acorns continue its growth trajectory and expand its services globally.
The acquisition is also an indication of the growing interest in fintech startups and the potential for disruption in the banking industry. As traditional banks struggle to keep up with the pace of innovation, startups like Acorns and GoHenry are redefining what it means to be a bank and providing new services and products to consumers.
In conclusion, Acorns' acquisition of GoHenry is a significant move that will help the company expand into the European market and tap into the growing trend of micro-investing and youth banking. The two companies share a vision of providing financial education and services to a wider audience, and the acquisition will help them achieve that goal. The acquisition is also an indication of the growing interest in fintech startups and the potential for disruption in the banking industry.
