CIT To Acquire CITI's U.S. Business Technology Finance Unit10 Apr, 2007
CIT To Acquire CITI's U.S. Business Technology Finance Unit
NEW YORK - CIT Group Inc, a leading global provider of commercial and consumer finance solutions, announced today that it has signed a definitive purchase agreement to acquire the U.S. Business Technology Finance unit of Citigroup Inc.. The deal is expected to close in the second quarter. The total assets of the vendor finance business to be acquired are approximately $2 billion.
CIT Vendor Finance provides financing to customers of manufacturers, resellers and distributors through innovative sales financing programs and services. CIT's current vendor finance partners include some of the most recognized companies in the world.
Thomas B. Hallman, CIT Vice Chairman, Specialty Finance, said, "This acquisition is another important milestone in our strategy to become the global leader in Vendor Financing. A combination of strong organic growth and strategic acquisitions of high-quality organizations has positioned us well to accomplish this goal. The first priority of our newly combined team will be the delivery of exceptional levels of support to our customers."
This is CIT's second vendor finance transaction with Citi. In 2004, CIT acquired CitiCapital's vendor finance business in Western Europe. CIT's European presence was further strengthened three months ago when it acquired the $2 billion UK and German vendor finance business of Barclays Bank PLC.
"We are confident that CIT will provide the level of superior service that our U.S. Business Technology Finance customers have enjoyed and come to expect," said Rob Cook, President of CitiCapital. Kris Snow, President of CIT Vendor Finance, Americas, said, "This transaction makes perfect sense as it fits extremely well into our U.S. business, particularly in extending our presence with a majority of the leading office equipment and technology manufacturers and software providers. We look forward to bringing our value-added services to these companies and to their customers, which will enable them to grow and profit."