Gen Digital Acquires MoneyLion in $1B Deal, Expanding into Financial Wellness and Fintech

Gen Digital Inc. (NASDAQ: GEN) has long been a major player in the digital world, providing technology products that create digital freedom and safety for its customers. In a move that underscores its ambition to broaden its digital protection and consumer services portfolio, the company announced the acquisition of MoneyLion, a fintech company known for its AI-driven financial tools and super-app. The $1 billion deal marks a significant step for Gen as it ventures beyond its core cybersecurity and identity protection offerings into financial wellness.

From Cybersecurity to Financial Empowerment

Gen Digital, formerly known as NortonLifeLock, is a leader in cybersecurity, with iconic brands like Norton, LifeLock, and Avast under its umbrella. The company rebranded as Gen in 2022 following its $8 billion merger with Czech-based antivirus provider Avast. This merger was part of Gen’s strategy to position itself as a comprehensive provider of “digital freedom” solutions, protecting users’ privacy, identity, and online presence.

With the acquisition of MoneyLion, Gen is now extending its reach into financial technology. MoneyLion’s platform offers a suite of personal finance tools, including credit-building services, financial management products, and an AI-powered recommendation engine. These capabilities align with Gen’s mission to empower consumers by safeguarding both their digital and financial lives.

Why MoneyLion?

MoneyLion, founded in 2013 by Dee Choubey and serving over 18 million customers, has built a robust ecosystem that combines financial tools with personalized content and embedded marketplaces. Its super-app allows users to manage savings, investments, borrowings, and spending in one place. By integrating MoneyLion’s offerings into its portfolio, Gen aims to create a one-stop destination for consumers to manage their finances while also protecting their identities and data.

Source: Moneylion

Dee Choubey, inspired by witnessing the impact of the 2008 financial crisis on everyday Americans, founded MoneyLion after working at Goldman Sachs and Citadel. The company started as a lending platform but evolved into a comprehensive financial ecosystem, offering banking, investing, and credit-building services. Choubey’s goal was to create a customer-centric platform providing personalized financial advice and products tailored to each user’s unique situation. Under Choubey’s leadership, MoneyLion has grown significantly, going public in 2021.

The acquisition will more than double Gen’s addressable market to over $50 billion. It also provides opportunities for cross-selling: Gen can introduce MoneyLion’s financial tools to its nearly 500 million global users while offering its cybersecurity solutions to MoneyLion’s customer base.

Deal Details

The transaction values MoneyLion at $105 per share, comprising $82 per share in cash and an additional $23 per share in Contingent Value Rights (CVRs). The CVRs are tied to Gen’s stock performance, allowing MoneyLion shareholders to benefit if Gen’s stock reaches $37.50 for 30 consecutive trading days within two years post-closing.

The deal has been unanimously approved by the boards of both companies and is expected to close in the first half of fiscal year 2026. Analysts predict minimal regulatory hurdles, given the complementary nature of the businesses.

According to a press release from the cybersecurity giant, Evercore is serving as a financial advisor to Gen, and Kirkland & Ellis LLP is its legal advisor. Keefe, Bruyette & Woods, Inc., a Stifel company, is serving as exclusive financial advisor to MoneyLion, while Davis Polk & Wardwell LLP is providing legal counsel to MoneyLion.

Winners Surface

In an exciting outcome for the asset manager AAF, Omar Darwazah, Managing Director and General Partner at AAF Management Ltd., announced on LinkedIn that the Gen and MoneyLion deal marks a significant milestone for the emerging manager.

Omar posted on LinkedIn: “We received MoneyLion stock in both of our core Seed funds (AAF I and AAF II) after it acquired our portfolio company Even Financial in 2021.” The venture capital fund holds positions across several other leading fintech companies as well.

Source: LinkedIn Post by Omar Darwazah, MD & GP AAF Management Ltd.

A Strategic Pivot for Gen

This acquisition by Gen is not an isolated event but part of a broader strategy to diversify its offerings and tap into new growth areas. Over the past few years, Gen has focused on expanding its capabilities through strategic acquisitions. The merger with Avast brought advanced cybersecurity tools and access to new markets in Europe and Asia-Pacific. Now, with MoneyLion, Gen is venturing into fintech—a sector that complements its existing identity protection services.

“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,” said Vincent Pilette, CEO of Gen Digital.

This pivot reflects a growing trend among tech companies to offer integrated solutions that address multiple aspects of consumers’ lives. For Gen, combining cybersecurity with financial wellness is a natural evolution as digital threats increasingly overlap with financial vulnerabilities.

The Road Ahead

For MoneyLion, joining forces with Gen offers scale and distribution that would be difficult to achieve independently. “Joining Gen accelerates our vision by leveraging their global reach, trusted brands, and powerful ecosystem,” said Dee Choubey, CEO of MoneyLion.

The integration will likely focus on creating synergies between MoneyLion’s AI-driven platform and Gen’s cybersecurity expertise. Together, they aim to redefine consumer value by offering tools that not only protect but also empower users in managing their digital and financial lives.

As the deal progresses toward closure in 2025, it will be interesting to see how this partnership reshapes the landscape of both fintech and digital security. For now, it signals a bold step forward for Gen Digital as it continues its transformation from a cybersecurity giant into a holistic provider of digital life solutions. Gen Digital now has the opportunity to create a much broader M&A canvas on which its Corporate Development team can paint.

Sources

[1] Company Gen Digital Inc. – MarketScreener https://uk.marketscreener.com/quote/stock/GEN-DIGITAL-INC-4907/company/

[2] NortonLifeLock Merges With Avast to Form New Company … – PCMag https://www.pcmag.com/news/nortonlifelock-merges-with-avast-to-form-new-company-called-gen

[3] Gen Digital to acquire MoneyLion for enhanced financial services https://www.investing.com/news/company-news/gen-digital-to-acquire-moneylion-for-enhanced-financial-services-93CH-3763720

[4] Gen Extends its Financial Wellness Offerings with the Acquisition of … https://investor.gendigital.com/news/news-details/2024/Gen-Extends-its-Financial-Wellness-Offerings-with-the-Acquisition-of-MoneyLion/default.aspx

[5] [PDF] Gen Company Fact Sheet https://www.gendigital.com/media/lvdpmt2c/gen-fact-sheet_053024.pdf

[6] NortonLifeLock Completes Merger with Avast – Gen Investor Relations https://investor.gendigital.com/news/news-details/2022/NortonLifeLock-Completes-Merger-with-Avast/default.aspx

[7] Gen Digital announces agreement to acquire MoneyLion https://thepaypers.com/online-mobile-banking/gen-digital-announces-agreement-to-acquire-moneylion–1271428

[8] Gen Extends its Financial Wellness Offerings with the Acquisition of MoneyLion https://www.prnewswire.com/news-releases/gen-extends-its-financial-wellness-offerings-with-the-acquisition-of-moneylion-302327494.html

[9] [PDF] Gen Digital Inc. https://s201.q4cdn.com/771113172/files/doc_financials/2023/q4/a03a1d52-98a2-4418-8c2f-190034a171df.pdf

[10] Gen Digital to acquire MoneyLion in $1B deal https://www.bankingdive.com/news/gen-digital-to-acquire-moneylion-in-1b-deal/735317/