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In a significant corporate transformation, MoneyLion Inc. (NYSE:ML), a fintech company with a "GREAT" financial health rating according to InvestingPro analysis, announced the completion of its merger with Gen Digital Inc. on Thursday, effectively delisting its shares and warrants from the New York Stock Exchange (NYSE). The company, which achieved impressive revenue growth of 29% over the last twelve months, follows the Merger Agreement dated December 10, 2024, where MoneyLion became a wholly owned subsidiary of Gen Digital Inc.
As of the merger’s effective time, each share of MoneyLion’s Class A common stock was converted into the right to receive $82.00 in cash and one contingent value right (CVR), subject to the terms of the Contingent Value Rights Agreement. The total consideration for MoneyLion’s security holders is approximately $933 million, alongside roughly 11.6 million CVRs, which aligns closely with the company’s recent market capitalization of $972.4 million.
The merger has also led to significant changes in MoneyLion’s capital structure. Outstanding options to purchase MoneyLion stock with an exercise price below the closing price were converted into cash and CVR rights, while options at or above the closing price were cancelled without consideration. Vested and certain unvested restricted stock units (RSUs) were similarly converted into rights for merger consideration or into awards of Gen Digital’s common stock.
Furthermore, holders of redeemable warrants exercisable to purchase MoneyLion common stock now have the right to receive the merger consideration as if they had been exercised prior to the merger. A special provision allows for a reduced exercise price if the warrants are exercised within 30 days following the merger’s public disclosure.
The merger has triggered the resignation of all MoneyLion directors as of the effective time, and the company’s certificate of incorporation and bylaws have been amended accordingly. MoneyLion has also repaid all loans and terminated all related credit commitments under a Credit Agreement dated November 25, 2024, with Silicon Valley Bank as the administrative agent. The company’s strong liquidity position, with a current ratio of 2.6, has supported this financial restructuring.
MoneyLion has notified the NYSE of the merger’s consummation and requested the suspension of trading and delisting of its shares and warrants. The company also intends to file Form 15 with the SEC to terminate its registration and suspend its reporting obligations under the Securities Exchange Act.
This transformational event, based on a press release statement, marks a new chapter for MoneyLion as it integrates into Gen Digital Inc., reshaping its future operations and financial structure. The merger comes after MoneyLion’s stock demonstrated strong momentum with a 78% price return over the past six months. For deeper insights into similar corporate transformations and comprehensive financial analysis, investors can access detailed Pro Research Reports for over 1,400 US stocks through InvestingPro.
In other recent news, MoneyLion Inc. reported its fourth-quarter earnings, showcasing a revenue of $158.6 million, which surpassed B.Riley’s forecast by over $8 million. The company’s adjusted EBITDA also slightly exceeded expectations, reaching $25.6 million. MoneyLion’s revenue grew by 40% year-over-year, with enterprise revenue accelerating to $61 million, marking an 81% growth compared to the previous year. For the year 2024, MoneyLion achieved a 29% increase in revenue, added 6.4 million new customers, and reported positive GAAP net income. Despite these strong financial results, B.Riley downgraded MoneyLion’s stock rating from Buy to Neutral and adjusted the price target to $90 from $133. The analysts noted the company’s strategic increase in marketing and other expenditures as a move intended to foster further growth. B.Riley’s analysis suggests that MoneyLion’s investments are expected to support ongoing expansion and future financial success.
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