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FinTech Pagaya Technologies is mulling a nationalist offering via a merger with the peculiar intent acquisition institution (SPAC) EJF Acquisition Corp that would worth the startup astatine astir $9 billion, the Wall Street Journal reported connected Wednesday (Sept. 15), citing sources.
Co-founded by Gal Krubiner, who serves arsenic the company’s CEO, and based successful Israel, New York, and Los Angeles, Pagaya was launched successful 2016 to marque lending and different processes for fiscal services much efficient. The SPAC merger could beryllium announced sometime this week, the sources said.
The steadfast uses centralized enabling exertion to powerfulness its artificial quality (AI) web with the extremity end of amended outcomes for fiscal services providers and their customers, according to the company’s website.
The AI web drives an automated process that evaluates each transactions successful real-time and analyzes ample quantities of information to assistance its user loan, recognition card, and existent property concern clients service up much products to a larger lawsuit base.
Pagaya’s second-quarter income neared $95 million, and the startup is eyeing a determination into owe and security products, the sources told WSJ. The institution employs implicit 400 people.
A backstage concern successful nationalist equity, oregon PIPE, is anticipated to beryllium portion of the projected SPAC merger and could rise astir $200 million, according to the sources. Pagaya has been backed by the Singapore sovereign-wealth fund, the task superior limb of insurer Aflac, and Harvey Golub, retired American Express CEO.
The $200 cardinal PIPE could travel by mode of EJF Capital and its associated concern vehicles, per the sources. EJF, co-founded by Emanuel “Manny” Friedman, has a estimation for putting its superior into the fiscal services space, and it’s anticipated that helium volition articulation Pagaya’s committee of directors, the root said.