Oportun Financial to acquire Hello Digit in $212.9M deal

Oportun Financial Corp. agreed to acquire Hello Digit Inc., a neobanking platform that provides automated savings, investing and banking tools.

Under the terms of the deal, Oportun will acquire Hello Digit for approximately $212.9 million, comprising $98.5 million in equity and $114.4 million in cash, subject to customary adjustments. Oportun obtained a commitment to finance the cash consideration.

Hello Digit will operate as a business unit within Oportun and continue to be led by Hello Digit founder and CEO, Ethan Bloch. All of Hello Digit's more than 100 employees will join Oportun along with Bloch and continue their job functions, according to a news release.

The deal is expected to close by the end of 2021 or early 2022.

J.P. Morgan was exclusive financial adviser and Wilson Sonsini Goodrich & Rosati was legal counsel to Oportun. Jefferies provided the financing commitment, subject to customary closing conditions.

Goodwin Procter was legal counsel to Hello Digit. Financial Technology Partners is serving as exclusive strategic and financial adviser to Hello Digit.