Figure Technology Solutions (FIGR) investor relations material

Deal rationale and strategic fit

• The acquisition expands access to over $7 billion in annual marketplace volume, strengthening leadership in residential transition and DSCR loans and accelerating blockchain integration in capital markets.

• Integrating Kiavi's AI-powered lending platform and proprietary valuation technology supports modernization and digitization of real estate finance.

• The transaction deepens the strategic partnership with Sixth Street and broadens product distribution across 380+ partners.

• The deal targets a $200 billion annual non-bank investor mortgage market and enhances capital markets efficiency.

Financial terms and conditions

• Total purchase price is $717 million, with $538 million from the acquirer and $179 million from Sixth Street, funded by a planned $600 million unsecured notes issuance; 100% cash at closing.

• Sixth Street acquires RTL assets and origination rights, while the acquirer takes over technology, data, IP, employees, and customer relationships.

• Kiavi generated over $250 million in revenue and $100 million in EBITDA in the previous year, with high margins above the Rule of 40 metric.

• Estimated pro forma corporate leverage below 2.0x post-closing, with over $3 billion in forward purchase commitments from Sixth Street.

Synergies and expected cost savings

• $35 million in cost synergies expected within 24 months, primarily from technology consolidation, AI adoption, and process optimization.

• Technology integration will reduce origination and processing costs, leveraging blockchain and AI to lower costs below $1,000 per loan.

• Integration is projected to reaffirm a 60% medium-term EBITDA margin target and deliver unlevered cash payback in less than four years.

• Capital-light structure and recurring RTL borrowers will enhance contribution margin and EBITDA.