– The acquisition should accelerate the process of obtaining a banking license, triple its credit portfolio and reduce financing costs by Europe.
– Dr. Gal Aviv, CEO of Blender Financial Technologies Group: “This acquisition is another step in realizing our vision to become a market leader in digital banking by Europe“
TEL AVIV, Israel, January 18, 2022 /PRNewswire/ — Financial Technologies Blender (TASE: BLND) announced the acquisition of a Lithuanian credit union which has received approval in principle to convert from a credit union to a bank and is in the advanced stages of obtaining a specialized banking license. The acquired company specializes in mortgage-backed lending with a total secured loan portfolio of 112 million shekelsmanages deposits reaching 124 million shekels and has equity of approximately 9 million shekels. Blender will purchase approximately 77% of the shares of credit union, held by the seller through a wholly-owned company, at a price of approximately 18 million shekels.
This acquisition is subject to the completion of complete satisfactory due diligence and to the conversion of the cash register into a specialized bank – conditions precedent to the operation.
The objective of this acquisition is to promote Blender as a pan-European digital bank specializing in mortgage loans, real estate loans and secured consumer loans. Additionally, the acquisition is expected to speed up the process of obtaining a banking license, triple Blender’s credit portfolio and reduce its funding costs by Europe.
This is another milestone in Blender’s expansion since its IPO on the Tel Aviv Stock Exchange in January 2021following the expansion of its activities in Europe Last year. Last September, the company also announced the signing of an agreement with Bank Hapoalim, under which a joint venture will be created to provide digital consumer credit to finance purchases at points of sale and on e-commerce. With its state-of-the-art BlenderPay product, Blender is a leader in the field of BNPL (Buy Now Pay Later), an area that is experiencing accelerated growth worldwide, and also in Israel.
The acquired company was established as a credit union in 2012, providing financial services in the form of credit and guaranteed deposits. The credit union maintains deposits of approximately 124 million shekels pay an average annual deposit rate of 2.2% and manage a secured credit portfolio of 112 million shekels with a focus on mortgages, secured loans for businesses and secured loans for property developers.
Lithuania has strong credit potential in general and real estate-backed credit in particular. In the first half of 2021, Lithuania the economy and real estate continued to experience strong growth with a focus on new home sales, showing consistent growth at an average rate of 5.6% over the past few years.
According to to Dr. Gal Aviv, CEO of Blender Financial Technologies Group“This acquisition is another step in realizing our vision to become a market leader in digital banking by Europe. We estimate that this acquisition and the obtaining of our banking license will be finalized during this second quarter. This is a milestone for the business, underscoring our rapid growth in digital banking in Europe, which will accelerate our fundraising through new and diversified sources of funding while increasing our overall profitability. We are fully focused on growing the business and delivering on our vision to lead a new technology-enabled banking model.”
Blender is an international fintech company that provides innovative credit and financing solutions to tens of thousands of customers, based on their preferences and needs.. The company has developed a unique and effective technology to provide credits, using methodologies, tools and ideas from the fields of big data, data mining, machine learning, behavioral psychology, etc. . The company was founded in 2014 by CEO Dr. Gal Aviv, Deputy Managing Director and Chief Technology Officer Boaz Aviv and Deputy General Manager and Product Manager Barak Gour. The company operates in Israel and Europe. In January 2021the company completed its IPO on the Tel Aviv Stock Exchange.