OnDeck, the online lender to small businesses, is being acquired by rival Enova in a cash and stock deal worth around $90 million.
The $90 million - $8 million of which will be in cash - is a 90% premium on OnDeck's closing price on Monday.
Founded in 2006, OnDeck was a pioneer of the alternative lending market, using data analytics and digital technology to make real-time lending decisions. The firm went public in 2014 and joined the unicorn club.
However, it has struggled in recent times. Last year JPMorgan Chase ended a four-year collaboration with OnDeck to provide online loans to small businesses. The US bank has brought processing inhouse to offer similar services from its own platform, a decision which sent shares in OnDeck tumbling.
The company posted a $59 million loss in the first quarter of 2020 and has been further hit by the economic fallout from the Covid-19 pandemic.
Noah Breslow, CEO, OnDeck, says: "Following an extensive review of our strategic options, we believe this is the right path forward for our customers, employees and shareholders.
"Joining forces with Enova, a highly-respected and well-capitalized leader in online lending, and leveraging our combined scale and strengths, provides the best opportunity for our long-term success."