Navient Acquires Earnest For $155 Million
Navient, a leading provider of asset management and business processing solutions, announced it has entered into an agreement to acquire Earnest, a leading financial technology and education finance company. Under the terms of the agreement, Navient will acquire Earnest for $155 million in cash.
“Combining Earnest’s best-in-class data science, digital marketing, and technology with Navient’s industry and capital markets experience create[s] an exciting platform to deliver value for consumers and investors,” said Jack Remondi, president and CEO of Navient. “Together, we will create and deliver consumer-centric education credit products for the digital age.”
Earnest, founded in 2012, is a technology-enabled lending company that enables customers to renegotiate loan repayment amounts and interest rates for existing loans. The company evaluates financially-responsible people’s education, employment, and financial profiles, and, based on their credit scores, rewards them with better rates on personal loans and student loan refinancing. In addition, it offers an online dashboard that gives clients tools they need easily to control and customize their loan payments. The company had previously raised more than $119 million from Battery Ventures and Maveron.
As part of Navient, Earnest will continue as a distinct brand and will be led by its current management team, including founders Louis Beryl and Ben Hutchinson. Earnest clients will continue to enjoy the same customer service, rates, terms and benefits.