Acorns, a micro-investment service that automatically invests small amounts from its customers’ bank accounts into investment funds, has acquired Vault, a developer of retirement fund investment services.
According to a TechCrunch news report, Portland-based Vault’s application allows users to set aside part of their paychecks into retirement funds.
In light of the acquisition, Acorns announced it will be launching a new individual retirement account called Acorns Later. Current customers can get on the waitlist for the product, which will be available starting January 2018.
“Our goal is to make saving for retirement as easy as investing spare change,” said Acorns chief executive Noah Kerner, in a statement emailed to TechCrunch. “One in three Americans haven’t saved anything for retirement savings and we plan to change that. This partnership accelerates our mission of looking after the financial best interests of the up-and-coming by helping people create an even better future for themselves.”
While the deal enables Vault to reach a wider group of potential investors, it also gives Acorns a foothold in the Portland market, which it sees as an emerging hub for developer talent. Acorns is looking to hire more than 12 engineers to build out its staff as it continues developing its suite of products.
Following the acquisition, Vault and its employees will become part of Acorns. Randy Fernando, Vault’s co-founder and CEO, will become a managing director at the company, reporting to Acorns’ chief financial officer, Manning Field.