Deal with SPAC

A source familiar with the matter said Pagaya Technologies Ltd. was nearing an agreement to put a value of about 9.90 billion toward a joint public offering through a merger with a specialty acquisition company.

Pagaya, based in New York and Tel Aviv, operates an artificial intelligence network to make financial transactions, such as loans more efficient and more people can borrow. Banks and other financial service providers use this platform to analyze a large amount of data so that partners can serve more customers. According to the manager, Pagaya is a subsidiary of SPAC EJF Acquisition Corp.

Founded in 2016, Pagaya has partnered with many industry startups to open shares and raise large sums of money. Investors expect the software to compromise their finances. According to Factset, Upstart Holdings Inc. share price may rise by about 560% after trading a traditional IPO.

Trading app eToro Group Ltd., personal-finance firm Sofi Technologies Inc., and digital mortgage lender Better Holdco Inc. announced in 2021 a PSPC agreement according to which each company will be worth more than about 70 billion dollars.

Backed by investors including Singapore-based sovereign wealth fund GIC Pte. Ltd., the former CEO of American Express Co. and the venture capital arm of insurance company Aflac Inc., Pagaya is expected to raise about 200 million in private equity investments, or PIPE, related to the deal with SPAC, the sources said.

The acquisition of EJF SPAC is backed by investment firm EJF Capital LLC, which holds about 2 29,000 in funds, but SPAC investors can raise money before the deal is finalized.

The 2.2 billion pipeline will be raised by funds managed by EJF Capital and its investment vehicles.