Monday, June 30, 2014

CIT acquires technology specialist Direct Capital

CIT acquires technology specialist Direct Capital

CIT Bank has signalled its intention to expand its small business and middle market lending and equipment leasing capabilities, with the acquisition of  New Hampshire-based financial technology specialist Direct Capital Corporation which operates  an online lending platform serving this market.

The deal will see Direct Capital offer CIT’s broad range of products and services to its customers. Christopher J. Broom, co-founder and chairman of Direct Capital, and James P. Broom, chief executive officer will continue to lead the business. Terms of the agreement, which is due to close in the third quarter, have not been disclosed.

"Through its customer-centric approach and unique value-added technology platform, Direct Capital has established itself as a leader in providing small and mid-sized businesses fast, flexible and affordable financing," said Nelson J. Chai, president of CIT Group Inc., chairman and CEO of CIT Bank. "Direct Capital's proprietary online lending platform, LendEdge, will complement our existing small business and mid-market customer offerings as we continue to provide financing to these important sectors of the US economy.”

Since its formation in 1993, Direct Capital has provided more than 80,000 small and mid-sized businesses over $2.25 billion in equipment, franchise and vendor financing and lending solutions to grow their businesses. Direct Capital has assets of approximately $500 million and 250 employees.