Special purpose acquisition company Pioneer Merger Corp. and investing app Acorns Grow have mutually terminated their $2.2 billion merger agreement, according to a regulatory filing on Tuesday. The deal, announced in May last year, was originally expected to close in the second half of 2021 and the Irvine, California-based company was to be listed on the Nasdaq. Acorns will pay Pioneer $17.5 million in termination fees in monthly payments until Dec. 15, as per the agreement. “Given market conditions, we will be pivoting to a private capital raise at a higher pre-money valuation,” Chief Executive Officer Noah Kerner told Reuters. Kerner did not disclose what valuation Acorns was targeting. A source familiar with the matter said the scrapped merger was valued at $1.5 billion pre-money. The source added the company was also considering a public listing through a traditional initial public offering (IPO) at a later date, but did not …
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