NerdWallet, Inc. (Nasdaq: NRDS), a platform that gives monetary steering to customers and small- and mid-sized companies (SMBs), is to amass On the Barrelhead, Inc., a Durango, CO-based data-driven platform that gives customers and SMBs with credit-driven product suggestions to assist enhance their monetary lives.
Below the phrases of the merger settlement, NerdWallet will purchase the entire excellent shares of On the Barrelhead for whole consideration of roughly $120m, topic to customary buy worth changes, consisting of roughly $70m in money and $50m in NerdWallet Class A typical inventory. NerdWallet expects to finance the money portion of the acquisition with borrowings from its present credit score facility. The transaction is topic to customary closing circumstances and is predicted to shut within the third quarter of 2022.
Via this acquisition, On the Barrelhead will totally combine into NerdWallet’s present groups, model, merchandise and know-how. Along with NerdWallet’s ongoing growth into new monetary classes and geographies, the deal reinforces NerdWallet’s means to vertically combine, as confirmed with its acquisition of Fundera.
NerdWallet’s model and monetary steering paired with On the Barrelhead’s proprietary information and know-how options will allow customers and SMBs to match with monetary merchandise and make good cash strikes.
Led by Sam Yount, CEO, On the Barrelhead is a platform that gives customers and SMBs with personalised credit score suggestions by intelligently matching buyer credit score info with monetary associate information. By leveraging information evaluation, the platform additionally helps customers enhance their funds by surfacing new product suggestions to handle their debt and save them cash.
For the twelve months ended December 31, 2021, On the Barrelhead generated roughly $38 million in income, rising roughly 90% year-over-year, and $5 million in internet earnings.