Figure Technology Solutions Inc. (NASDAQ: FIGR) announced a definitive agreement to acquire Kiavi, an AI-powered lending platform for residential real estate investors, for $717 million. The transaction includes Figure purchasing Kiavi's technology and operating platform, while a joint venture between Figure and Sixth Street will acquire Kiavi's balance sheet assets.

Kiavi operates as a lender for residential transition loans and debt service coverage ratio loans, serving real estate investors who buy, renovate and rent investment properties. The company reported over $250 million in revenue and more than $100 million in EBITDA last year.

The acquisition is expected to add $7 billion in annual first-lien volume to Figure's marketplace and more than $100 million monthly to its Democratized Prime platform, where lenders connect with investors. Figure stated the transaction represents a $200 billion annual addressable origination opportunity.

"Figure is relentless in our pursuit of moving the capital markets onto blockchain rails, and nine months past our successful IPO, this Kiavi transaction is a further pole vault into tokenization, first-lien diversification and our agentic AI platform," said Michael Tannenbaum, Figure CEO.

Following the deal's completion, Kiavi CEO Arvind Mohan will join Figure's executive team as Chief Business Officer. Figure expects the acquisition to be accretive to earnings per share with an unlevered cash payback in less than four years while maintaining its 60% EBITDA margin target.

Barclays Capital served as financial advisor to Figure and Sixth Street, while Jefferies advised Kiavi. The information is based on a company press release.