Investing.com — Figure Technology Solutions Inc. () announced Wednesday a definitive agreement to acquire Kiavi, an AI-powered lending platform for residential real estate investors, for $717 million. The transaction includes the purchase of Kiavi’s balance sheet assets by a joint venture between Figure and Sixth Street, a global investment firm.

Kiavi’s platform provides real estate investors with capital for buying, renovating, and renting investment properties. Its products include short-term Residential Transition Loans and long-term rental property loans known as Debt Service Coverage Ratio loans.

The acquisition is expected to add more than $7 billion in annual first-lien volume to Figure’s Connect marketplace and over $100 million monthly to Democratized Prime, Figure’s blockchain-native warehouse marketplace. The transaction represents a $200 billion annual addressable origination opportunity that will be brought onto Figure’s tokenized rails.

Figure currently accounts for 75% of real-world asset tokenization. The company said the combined businesses’ operational strengths and expanded scale support its 60% medium-term EBITDA margin target. Figure expects both accretion to earnings per share and an unlevered cash payback in less than four years.

Kiavi’s asset class will be the first use case for Adaptor, Figure’s newest AI product that supports agent-to-agent onboarding across all asset types in Figure Connect and Democratized Prime.

“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.

Arvind Mohan, CEO of Kiavi, will join Figure’s executive team as Chief Business Officer following the deal close. Kiavi reported over $250 million in revenue and over $100 million in EBITDA last year.

Barclays Capital Inc. served as exclusive financial advisor to Figure and Sixth Street, while Jefferies LLC served as exclusive financial advisor to Kiavi.

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