Navient to Buy Fintech Firm Earnest for $155 Million -

www.wsj.com

Navient, one of the largest U.S. companies that collects payments on student debt, jumped into the lending business by agreeing to acquire financial-technology startup Earnest Inc. The Wilmington, Del.-based company will pay $155 million in cash for Earnest. Navient plans to maintain the Earnest brand as a separate unit.

Earnest was founded in 2012 and raised over $119MM in VC funding, according to the WSJ in 2015 the company was valued at $375MM. Has online lending hit a cap? Prosper has also been supposedly struggling, SoFi is all over the place and public companies On Deck and Lending Club have yet to get back to their IPO price. Then again, each company (and team) is unique and if anything, these acquisitions prove there's some sort of market out there.

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