Walmart's Fintech Arm Hazel Announces Definitive Merger Agreements With Even and ONE Following Acquisition; John Furner, Micky Malka, and Omer Ismail Discuss
NEW YORK - Big-box retailer Walmart seems to have an aggressive growth strategy in motion as the company has recently announced new executives, a leadership shakeup, and an investment in fresh produce. Building on this development, Hazel, the retailer’s independent fintech arm launched in partnership with Ribbit Capital, has revealed that it has entered into definitive agreements to acquire Even and ONE fintech platforms.
“Walmart is constantly looking for new ways to deliver on our core mission of helping our customers save money and live better,” said John Furner, President and Chief Executive Officer, Walmart U.S. and Board Member of the combined business. “Customers have made it clear that they want more from us in the financial services arena. Creating a simple, personalized app that allows users to manage their money in one place is the natural next step toward fulfilling that. We couldn’t be more excited about what this will mean for Walmart customers, associates, and consumers everywhere as we try to help empower millions to improve their financial lives.”
The transactions are currently expected to close in the first half of 2022, pending approvals, as noted in a release. Through these acquisitions, Hazel will be able to deliver a single financial services app that allows consumers to get paid, spend, save, borrow, and grow their money.
Following the acquisition, the new combined business will operate under the brand name ONE, and will provide users with the chance to holistically manage their finances in one place. The company’s services and products will be made available directly to consumers through employers and merchants, including access given to Walmart’s 1.6 million U.S. associates and 100 million-plus weekly shoppers.
"Consumers are always seeking better services, and in financial services, this means transparency, access, and simplicity,” added Micky Malka, Managing Partner, Ribbit Capital and Board Member of the combined business. “The combination of these world-class teams and products will give ONE a unique opportunity to bring a new level of service and access to millions of Americans.”
As the combined business comes to fruition, Omer Ismail will lead ONE as Chief Executive Officer. Other leaders, David Baga, CEO of Even, and Brian Hamilton, Co-Founder of ONE, will remain in key leadership positions. Upon closing of the transactions, the combined business will have more than 200 employees and more than $250 million in cash on the balance sheet to fund future growth.
“Consumers everywhere are being left behind by the world of financial services,” commented Ismail. “Our vision is clear: build on Even and ONE’s success to offer a product that offers consumers the best way to spend, the best way to access their wages, and helps millions save and grow their money. I’m looking forward to partnering with two stellar leaders in Brian and David to improve the financial lives of tens of millions of consumers.”
Over time, as the ONE app grows, Walmart announced that it will become integrated inside its physical and digital channels, offering solutions to its associates and shoppers.
To read the release in full and understand more of the company’s goals, click here.
With this ambitious growth strategy at work, what will come next for the big-box retailer? Keep reading AndNowUKnow for answers.