San Francisco-based lending platform Earnest has closed a $155m deal to be acquired by asset management company Navient.
Founded in 2013, Earnest offers borrowers access to credit for student loan refinancing, parent PLUS refinancing and personal loans. The company offers lower rates, by using its technology to account for saving patterns, investments and career trajectory.
By the end of the year, Earnest expects to originate almost $1bn in student loan refinancing plans.
Through the partnership, Earnest will remain as a distinct brand and led by its existing management team.
Delaware-headquartered Navient is an asset management and business processing solutions for education, healthcare and government departments.
Navient president and CEO Jack Remondi said, “Combining Earnest’s best-in-class data science, digital marketing, and technology with Navient’s industry and capital markets experience create an exciting platform to deliver value for consumers and investors. Together, we will create and deliver consumer-centric education credit products for the digital age.”
Prior to the acquisition, Earnest had raised almost $100m through funding rounds since launch, with it having pulled in around $99m to date. The company had received a $75m Series B in 2015, to help the company provide more loans.
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