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(Sharecast News) - Barclays has agreed to acquire children's money management platform GoHenry from US fintech group Acorns, it announced on Friday, as the bank looked to strengthen its youth banking proposition and deepen relationships with families and mass-affluent households.
The acquisition was expected to complete in the fourth quarter of 2026, subject to regulatory approvals and other conditions.
Barclays did not disclose the price, although City AM reported, citing sources, that the bank was paying about 180m.
GoHenry offers prepaid debit cards and a money management app for children aged six to 18, allowing them to earn, save, spend and invest while parents monitor and guide their financial choices.
The platform also provides savings goals, financial education lessons and Junior ISAs.
Founded in 2012 by Louise Hill, GoHenry serves more than 500,000 children in the UK and has helped over two million young people build money skills since launch.
It employs about 200 people and operates through a cloud-based technology platform.
Barclays said it intended to retain the GoHenry brand and standalone app.
The deal was designed to give GoHenry users a route into Barclays products when they turn 18, while allowing the bank to serve customers from their first account through to later-life savings and retirement.
"GoHenry has played a pioneering role in creating youth-focused financial services, building a market-leading brand for children thanks to its innovative all-in-one app," said Vim Maru, chief executive of Barclays UK.
"We're excited to welcome GoHenry to Barclays, where it will turbocharge our offering for households and families.
"GoHenry supports our vision to offer a deep and seamless banking experience to customers through all of life's big moments, whether opening a very first account, saving for retirement, and everything in between."
GoHenry founder Louise Hill said: "Our mission has always been to make every kid smart with money. Joining forces with Barclays gives GoHenry a platform to accelerate that mission in the UK."
"GoHenry isn't going anywhere. What changes is our ability to do more," she added.
The deal was expected to reduce Barclays' common equity tier one ratio by about five basis points on completion, based on its capital position at 31 March.
Barclays said the transaction would not affect its financial guidance or targets for 2026 or 2028.
City AM said GoHenry recorded a loss of 21.9m in its 2024 financial year, narrowing from 48m the previous year.
A person familiar with the transaction told the newspaper that the acquisition was intended to support higher long-term returns beyond 2028.
The takeover comes as UK banks and fintech groups compete to attract younger customers and build relationships with families earlier.
NatWest bought children's money app RoosterMoney in 2021, while Monzo and Revolut had expanded their offerings for children and teenagers.
Acorns would retain GoHenry's US business, which operates under the Acorns Early brand, as well as European children's banking platform Pixpay.
Barclays and Acorns said they were also exploring further ways to collaborate.
At 1052 BST, shares in Barclays were up 4.91% at 471.1p.
Reporting by Josh White for Sharecast.com.