Enova Announces Definitive Agreement to Combine its ODX Business with Fundation's Business to form Market-Leading Digital Account Origination Company

Rhea-AI Summary

Enova International (NYSE: ENVA) has announced a definitive agreement to merge its ODX business with Fundation. The new entity, named Linear Financial Technologies, will focus on AI-based SaaS lending solutions for small businesses and banks. Enova will maintain a minority stake in Linear. According to CEO David Fisher, this merger positions Linear as a leading independent provider in the market, aiming to accelerate growth while allowing Enova to concentrate on its core U.S. small business and consumer markets.

Positive

• Formation of Linear Financial Technologies, enhancing Enova's market position in SaaS solutions for small business lending.
• Enova retains a minority stake in Linear, allowing potential future financial gains.

Negative

• None.

CHICAGO, Feb. 25, 2021 /PRNewswire/ -- Enova International (NYSE: ENVA), a leading financial technology and analytics company offering consumer and small business loans and financing, today announced that it has entered into a definitive agreement to combine its ODX business with Fundation, an origination solutions provider focused on the business banking market. Enova will retain a minority stake in the new combined business.

The combined company will be named Linear Financial Technologies ("Linear") and will be the market leader in AI-based SaaS small business lending solutions, digital account origination technology and insights for financial institutions, B2B vendors and SMB service providers.

"This transaction creates the largest independent SaaS provider to banks for small business lending, with a product set that is superior to other offerings in the market," said David Fisher, Enova's CEO. "We believe that this transaction will fuel growth for Linear while enabling us to more efficiently focus our efforts on growing our core U.S. SMB and consumer businesses." 

About Enova

Enova International (NYSE: ENVA) is a leading financial technology company providing online financial services through its AI and machine learning powered lending platform. Enova serves the needs of non-prime consumers and small businesses, who are frequently underserved by traditional banks. Enova has provided more than 7 million customers with over $40 billion in loans and financing with market leading products that provide a path for them to improve their financial health. You can learn more about the company and its brands at www.enova.com.

 

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SOURCE Enova International, Inc.

FAQ

What is the recent merger involving Enova International (ENVA)?

Enova International has merged its ODX business with Fundation to form Linear Financial Technologies, focusing on AI-based small business lending solutions.

What is the significance of the merger for Enova's business?

The merger establishes Linear as a market leader in SaaS small business lending, potentially driving growth for Enova's core operations.

What does Enova International plan to do after the merger?

Enova intends to focus more on growing its core U.S. small business and consumer financial services.

What will be the name of the new company formed by Enova and Fundation?

The new company will be called Linear Financial Technologies.

How much has Enova provided in loans and financing to customers?

Enova has provided more than $40 billion in loans and financing to over 7 million customers.