Student loan servicer Navient has acquired fintech firm Earnest for $155mn; the motivation behind the deal will pave the way for Navient to enter the lending business; “We’re looking to be the major player in the student loan refi space,” said Navient CEO Jack Remondi in an interview with the WSJ. Source.
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Steve McLaughlin has a wealth of knowledge when it comes to M&A in fintech, having advised on many deals in the space; he founded his firm FT Partners when he was 32 years old; according to data from KPMG, M&A was down in 2016 by 68% compared to 2015; McLaughlin shares his thoughts on what has contributed to the decline and where the industry is going from here; believes that the ability for companies to raise financing rounds has contributed to the lower amount of M&A deals; many companies in fintech are also fairly young when it comes to the earnings which makes M&A not as attractive to banks; McLaughlin also talks about the deals that have occurred in fintech and the sectors that are hot in 2017. Source