TEMPE, Ariz. - Gen Digital Inc. (NASDAQ: GEN), a cybersecurity and digital privacy leader with a market capitalization of $18.75 billion and an impressive 80.43% gross profit margin, has announced a definitive agreement to acquire financial technology company MoneyLion Inc. (NYSE: ML). According to InvestingPro analysis, Gen Digital maintains a GREAT financial health score, positioning it well for strategic acquisitions. The transaction is valued at approximately $1 billion, with an additional contingent payment based on future stock performance.
The acquisition, unanimously approved by both companies' Boards of Directors, will see MoneyLion shareholders receive $82.00 per share in cash and one contingent value right per share. This right could yield an additional $23.00 in Gen Digital stock if certain conditions are met within 24 months post-closing. Gen Digital's strong financial position, with $3.86 billion in revenue and $1.83 billion in EBITDA, supports this significant transaction. The deal is expected to close in the first half of fiscal year 2026 and is not anticipated to impact Gen's fiscal year 2025 guidance.
MoneyLion brings to Gen a robust digital consumer finance ecosystem, including personal finance management tools and an AI-driven recommendation platform. Gen's CEO, Vincent Pilette, expressed enthusiasm for the merger, highlighting the complementary nature of the companies' missions to empower consumers in managing and securing their digital and financial lives.
Dee Choubey, CEO of MoneyLion, also remarked on the strategic alignment, noting that the merger will accelerate MoneyLion's vision by leveraging Gen's global reach and trusted brand portfolio. The combined entity aims to offer a comprehensive suite of financial wellness services to its expanded customer base.
The deal is accretive to Gen's Non-GAAP EPS and aligns with the company's long-term financial model, with a commitment to maintaining net leverage below 3x EBITDA by FY27. Evercore is acting as financial advisor to Gen, with Kirkland & Ellis LLP as legal advisor. MoneyLion is advised by Keefe, Bruyette & Woods, Inc., and Davis Polk & Wardwell LLP for legal counsel.
Investors are directed to Gen's Investor Relations website for an investor presentation providing additional details on the acquisition. The transaction is subject to customary closing conditions, including regulatory approvals.
This news article is based on a press release statement from Gen Digital Inc. The company's stock has shown robust performance with a 36.27% year-to-date return. For deeper insights into Gen Digital's financials and growth prospects, including exclusive ProTips and comprehensive analysis, visit InvestingPro, where you'll find detailed research reports and expert recommendations.
In other recent news, Gen Digital has been making significant strides in its financial performance. Earnings and revenue results indicate a positive trajectory for the company. In the second quarter of fiscal year 2025, Gen Digital reported a 16% growth in earnings per share and a 3% increase in total revenue, reaching $974 million. This is coupled with a 5% increase in bookings, amounting to $964 million.
UBS has initiated coverage on Gen Digital, highlighting the potential for strong earnings per share growth through fiscal year 2027. The analyst from UBS anticipates that Gen Digital will grow at or above the consumer cybersecurity market rate, citing the company's strong position in the identity theft protection sector. The financial institution has set a price target of $36.00 for Gen Digital's stock.
Furthermore, Gen Digital has added 400,000 direct paying customers, expanding its customer base to 39.7 million. The company's Genie anti-scam product, powered by artificial intelligence, has surpassed 1.6 million downloads. In light of these developments, Gen Digital has raised its full-year revenue guidance to between $3.905 billion and $3.930 billion and EPS guidance to $2.18 to $2.23 per share. These are the recent developments from Gen Digital.
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