Pagaya bidding to acquire GreenSky for up to $800 million
Pagaya bidding to acquire GreenSky for up to $800 million
The Israeli fintech company has advanced to the final stage in the bidding for the purchase of GreenSky together with the likes of the Apollo investment fund and growth investment firm Sixth Street
Israeli fintech company Pagaya advanced to the final stage in the bid to acquire the American company GreenSky. If it wins, the deal is set to range between $600-$800 million.
GreenSky provides loans for home renovations and is considered one of the largest companies in the U.S. in this sector. Pagaya deals in underwriting and providing loans based on an artificial intelligence engine. It is currently traded on Wall Street with a market cap of around $1.4 billion.
Operating in the field of consumer credit, Pagaya is constantly looking for complementary acquisitions for its activity. At the beginning of the year, it purchased Darwin Homes, a company that operates in the field of rental real estate, and also examined the possible purchase of a company that operates in the field of credit for solar panels.
GreenSky's current owner is the investment bank Goldman Sachs, and besides Pagaya, the short list of candidates also includes giant entities on Wall Street, led by the Apollo investment fund and the growth investment firm Sixth Street.
The three finalists are set to submit another round of bids in the coming weeks. According to reports in the U.S., Pagaya may enter the final stage together with the investment fund General Atlantic, which has recently deepened its activities in Israeli high-tech. The others competing are also assisted by financial entities, for example, Apollo is working with investment giant Blackstone.
The sale of GreenSky is being done as part of Goldman Sachs' exit from the consumer credit market. The bank acquired the company in 2021, at a time when the market was booming, and paid $2.24 billion for it. It is now clear that the value in the upcoming transaction will be lower due to the slowdown in the American real estate market.
