Figure Technology Solutions completed its Acquisition of Kiavi for approximately $590 million in cash consideration net of cash acquired. The deal adds Kiavi’s technology platform and DSCR loans, while investors face stated integration, regulatory and financial-condition risks tied to the transaction.

Key Highlights

  • Figure primarily funded the transaction with net proceeds from $600 million of 8.500% Senior Notes.
  • The transaction included Kiavi’s technology platform and DSCR loans.
  • Figure repaid Kiavi’s outstanding Credit obligations and terminated a Deutsche Bank master repurchase agreement at closing.

Figure Technology Solutions, Inc. (NASDAQ: FIGR) completed its acquisition of Kiavi, Inc. The transaction’s cash consideration, net of cash acquired, was approximately $590 million. The acquired Assets included Kiavi’s technology platform and DSCR loans. Figure primarily funded the Merger Consideration with net proceeds from its $600 million Senior Notes carrying an 8.500% rate.

Kiavi Merger Closes With Financing Changes

The transaction followed an agreement involving Figure, Project Mason Merger Sub, Kiavi and Fortis Advisors LLC. Merger Sub merged into Kiavi, and Kiavi survived the merger as a Subsidiary of Figure. All closing conditions had been satisfied or waived when the deal closed. Figure also repaid all outstanding obligations under Kiavi’s Third Amended and Restated Credit Agreement. Kiavi Funding and Kiavi Funding Trust 2 terminated their Master Repurchase Agreement with Deutsche Bank AG (NYSE: DB), New York Branch, releasing liens tied to those obligations.

Integration and Regulatory Risks Identified

The Senior Notes carry an 8.500% rate. Figure identified its ability to integrate Kiavi’s Business and operations as a risk. It also listed the ability to realize anticipated benefits and synergies as a risk, along with potential adverse effects on its business, financial condition and results of operations.

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