Israeli fintech co Pagaya to complete SPAC merger this week

Pagaya founders Credit: Inbal Marmari
Pagaya founders Credit: Inbal Marmari

Last week SPAC company EJFA's share price fell 40% on the day before shareholders approved proceeding with the merger.

Despite the turbulent state of the market on Wall Street, Israeli fintech company Pagaya Technologies will complete its SPAC merger this week with EJF Acquisition Corp. (Nasdaq: EJFA), at a company valuation of $8.5 billion.

On Friday, EJFA’s shareholders voted to approve the proposed merger, while on Thursday Pagaya's shareholders had approved the merger. The companies said that the merger would be completed on or about June 22.

When the merger is completed, Pagaya will receive $350 million from PIPE (private investment public equity) investors including Tiger Global, Whale Rock, GIC - Singapore Sovereign Wealth Fund, Healthcare of Ontario Pension Plan (HOOPP), and G Squared.

But much of the additional $288 million in gross proceeds that it will receive from EJFA's cash in trust, when the SPAC merger is completed is unlikely to be forthcoming with many of the special purpose acquisition company's shareholders choosing to get their money back rather than proceed with the merger. On Thursday, EJFA's share price fell 40%.

Pagaya was founded in 2016 by CEO Gal Krubiner, Yahav Yulzari, and Avital Pardo. Pagaya provides P2P credit and loans and specializes in managing alternative investments through technology. Pagya raised $102 million in its most recent financing round in 2020 and since then has increased its company valuation 17-fold.

Earlier this month, Pagaya appointed former Barclays UK CEO Ashok Vaswani as its president to help shape the fintech company's future.

Published by Globes, Israel business news - - on June 19, 2022.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.

Pagaya founders Credit: Inbal Marmari
Pagaya founders Credit: Inbal Marmari
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