Israeli fintech company Pagaya has announced a merger agreement with special purpose acquisition company (SPAC) EJF Acquisition Corp. (Nasdaq: EJFA). The deal will see Pagaya listed on Nasdaq at a $8.5 billion valuation.
On completion of the merger, Pagaya will receive $288 million in gross proceeds from EJFA’s cash in trust, assuming no redemptions, and an additional $200 million in private placement in public equity (PIPE) from entities associated with EJFA.
Pagaya has developed a platform that allows lenders to analyze credit applications using artificial intelligence and machine learning technologies. The P2P platform makes financial transactions more efficient, allowing lenders to extend more credit and enabling more people to borrow more money.
The company was founded in 2016 by CEO Gal Krubiner, Yahav Yulzari, and Avital Pardo. Pagaya has raised $146 million to date including $102 million in a Series D financing round last year led by the Singapore Sovereign Wealth Fund (GIC). The company reportedly manages over $2 billion in various debt options.
Krubiner said, "This is an important milestone not just for us, but also for our partners, their customers and the broader financial services industry. Legacy systems are historically fractured and inefficient. We identified a significant opportunity to address the inefficiencies of the current system by constructing a network powered by our proprietary AI technology. Our combination with EJFA allows Pagaya to combine our expertise with EJF’s deep financial experience. Together, we can continue to expand a leading artificial intelligence network to help our partners grow their businesses and better serve their customers."
With offices in New York and Tel Aviv, Pagaya focuses on the US debt market and has 350 employees. Customers include banks, credit card companies, and auto finance companies.
Published by Globes, Israel business news - en.globes.co.il - on September 15, 2021
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