Goodments: Why is Douugh (ASX:DOU) Acquiring Millennial Investing Fintech Goodments?

SummaryDouugh has reached a binding term sheet for the acquisition of Goodments.The app has been a success among the young generation, primarily first-time investors.With the transaction, Douugh seeks to accelerate the launch of its integrated wealth management and monthly subscription in the United States.Purpose-led fintech company Douugh Ltd (ASX:DOU) is set to acquire fintech app Goodments Pty Ltd in an all-scrip deal. The company has executed a binding term sheet for acquiring 100% of the issued capital in the consumer business designed for millennial investors.Image source: ShutterstockDouugh CEO and Founder Andy Taylor has highlighted that Goodments successfully tapped into the GenZ and Millennial markets, looking for better returns while being conscious ethically, socially, and environmentally. The average customer age is 24 years, including both females and males. The app is serving its purpose well by offering high-tech and simple designs to this growing market of youngsters.The strategic purchase will speed up the development and widen the depth of DOU's 'Wealth Jars' feature. The app will facilitate the investors to achieve their saving goals by parking funds in custom-designed portfolios. The acquisition will aid in fulfilling Douugh objective to become an autonomous financial wellness platform.DOU is focused on expanding its customer base and monthly recurring revenue. It has plans to roll out several feature updates before offering a monthly subscription fee. It will launch Autopilot, an automated money management assistant, and Wealth Jars, the new managed investment portfolios.Also read: How has Trading Changed for Millennials? Technology Taking Charge in Shaping Trading HabitsAbout Goodments AppThe app was launched in Australia in the year 2017. It has established itself as a market leader in the responsible investing space. Following the customer-centric approach, the platform has been created for sustainability-minded investors. It manages multiple portfolios, single stocks like Disney, Amazon, Nike and Tesla, and fractionalised ETFs.Image source: ShutterstockIt is a regulated AFSL holder and has good ties with key players in the investing industry that includes brokers, financial institutions, and others. Most of its customers are first-time investors. Currently, it has a customer base of more than 12,700.Like DOU, it is also partnered with DriveWealth, a self-clearing broker based in the US, the custodian delivering US securities access.Acquisition ConsiderationDOU will issue AUD 1.5 million worth fully paid ordinary shares to Goodments' shareholders. The share price will be the 5-day VWAP of shares before the date of the execution of the share purchase deal between DOU and Goodments' shareholders.Also read: Douugh (ASX:DOU) completes $12 million placement, eyes US BNPL marketPost the acquisition, Goodments' Founder and CEO Tom Culver is likely to join DOU management team as the Head of Douugh Wealth.Precedent Conditions for AcquisitionMany conditions need to be fulfilled on or before 13 January 2021 for the successful acquisition of Goodments. Finalisation of due diligence investigations by two partiesDouugh and Goodments obtaining all related approvals from the board, shareholders, regulatory authorities and any third-party consents appliable for the transaction.No intervention by the government and regulatory authorities to prevent deal completion.Also read: Humm (ASX:HUM) and Douugh (ASX:DOU) join hands for BNPL launch in US