Fintech Startup Pagaya Reaches $9 Billion SPAC Deal to Go Public
Sept 15 (Reuters) - U.S.-Israeli fintech Pagaya on Wednesday agreed to go public through a merger with special-purpose acquisition company EJF Acquisition Corp (EJFA.O) in a deal with an enterprise value of $8.5 billion.
The deal will result in gross proceeds of $288 million from cash held in the blank-check firm's trust and a $200 million private investment in public equity (PIPE) from entities affiliated with EJF Acquisition.
Shares of EJF Acquisition rose 1.8% to $9.86 in premarket trade.
Founded in 2016, Pagaya manages assets for banks, insurance companies, pensions funds, asset managers, and sovereign wealth funds using artificial intelligence.
The fintech, led by co-founder and former UBS (UBSG.S) executive Gal Krubiner, earns a majority of its revenue from fees generated by institutional investors making purchases of products enabled by …
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