Blender acquires European financial corporation, increasing credit portfolio by NIS 112m

The deal is expected to triple Blender's European credit portfolio.

 Dr. Gal Aviv, CEO of Blender (photo credit: SIVAN FARAGE)
Dr. Gal Aviv, CEO of Blender
(photo credit: SIVAN FARAGE)

Blender Financial Technologies group, an international fintech company that provides credit and financing solutions using unique technology, has acquired a Lithuanian credit union, increasing its secured loan portfolio by NIS 112 million. The credit union, which specializes in mortgages, secured loans for business, and secured credit for real estate developers, manages deposits of up to NIS 124 million and has about NIS 9 million in equity. It was established as a credit union in 2012. 

Lithuania is considered to have great potential when it comes to credit, and real estate-backed credit in particular. The Lithuanian economy experienced strong growth in the first half of 2021, and new housing sales have consistently climbed at a rate of around 5.6% over the past few years.

The credit union has approval in principle to convert to a bank and is expected to obtain a special banking license in the near future.  Blender is set to purchase 77% of its shares, which are held by the seller through a wholly-owned company, for about NIS 18 million, subject to the credit union’s conversion to a special bank and completion of due diligence. The acquisition by Blender is expected to expedite the process of the credit union obtaining a banking license.

Blender’s aim is to become a pan-European digital bank specializing in mortgages, real estate-backed credit and secured consumer credit. Through the acquisition, Blender’s credit portfolio is expected to triple, and its costs of funding in Europe will be reduced. 

In January 2021, Blender’s expansion reached a major milestone with an IPO on the Tel Aviv Stock exchange, and in September it was announced that the company had signed an agreement with Bank Hapoalim. As part of the agreement, a joint company will be established that will “provide digital consumer credit to finance purchases at points of sale and on e-commerce websites.”  The company’s product, BlenderPay, is a leading solution in the field of Buy Now Pay Later (BNPL) in Israel and around the world. 

MARKET DATA at the Tel Aviv Stock Exchange.  (credit: AMIR COHEN/REUTERS)MARKET DATA at the Tel Aviv Stock Exchange. (credit: AMIR COHEN/REUTERS)

Dr. Gal Aviv, CEO and one of the founders of Blender, shared his thoughts on the acquisition in a recent press release: “This acquisition is a new milestone to fulfill our vision to become a market leader in digital banking in Europe. We estimate that this acquisition and obtaining our banking license will be finalized during this second quarter. This is a turning point for the company, highlighting our rapid growth in digital banking in Europe, that will accelerate our fundraising through new and diversified funding sources while increasing our overall profitability. Our full focus is on the company's growth and on fulfilling our vision to lead a new technology-based banking model.”