02:58 PM EST, 12/10/2024 (MT Newswires) -- Gen Digital ( GEN ) struck a deal to buy personal finance management platform MoneyLion ( ML ) in a deal seen widening Gen's "top of funnel" for its credit and identity protection solutions.

Cybersecurity, online privacy and identity protection company Gen Digital ( GEN ) will pay $82 per share in cash, representing a cash value of $1 billion, according to a statement released Tuesday. In addition, for each share owned, MoneyLion ( ML ) shareholders will receive a right entitling the holder to a payment of $23 in the form of Gen's shares, if the latter's average share price hits at least $37.50 over 30 consecutive trading days until 24 months after close.

Shares of Gen Digital ( GEN ) dipped 2.4% in afternoon trade while MoneyLion's ( ML ) soared 15%.

Gen's portfolio includes consumer brands, such as antivirus Norton, identity theft protection software LifeLock and online reputation management platform ReputationDefender.

"By bringing MoneyLion ( ML ) 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," Gen Chief Executive Vincent Pilette said.

MoneyLion's ( ML ) more than 18 million customers will help diversify Gen's customer base and expand its "top of funnel" for credit and identity protection, the companies wrote. Top of funnel refers to marketing activities carried out to create awareness about a brand or product.

The deal is expected to close in the first half of Gen's fiscal 2026.

Gen affirmed the fiscal 2025 guidance it provided at the end of October for revenue between $3.91 billion and $3.93 billion and adjusted earnings per share in the $2.18 to $2.23 range. Analysts surveyed by FactSet are modeling for revenue of $3.92 billion in the ongoing year and adjusted EPS of $2.21.

The acquisition is projected to be accretive to Gen's non-GAAP EPS at close.

"We'll deliver MoneyLion's ( ML ) leading personal financial management tools and embedded financial marketplaces to Gen's users while bringing Gen's strong identity, trust and cybersecurity solutions to our customers," MoneyLion ( ML ) Chief Executive Dee Choubey said in the statement.

Price: 29.68, Change: -0.80, Percent Change: -2.62