Fintech Pagaya Technologies and EJF Acquisition today announced they have entered into a definitive business combination agreement that values the combined company at an estimated enterprise value of approximately $8.5 billion at closing.
The transaction includes $288 million in gross proceeds from EJFA’s cash in trust (assuming no redemptions) and $200 million in gross proceeds from a fully committed PIPE from entities associated with EJFA that will close concurrently with the business combination. Additional targeted financing transactions or assignments may be considered.
Existing Pagaya equity holders, including current investors and employees of the firm, are expected to retain an approximately 94% ownership stake. The business combination, which has been unanimously approved by the boards of directors of both Pagaya and EJFA, is targeted to close in early 2022. Read more.
