United Community Banks to acquire NLFC in $130M deal
United Community Banks and NLFC Holdings Corp. announced a definitive agreement for United to acquire NLFC, including its wholly-owned subsidiary, Navitas Credit Corp. Headquartered in Ponte Vedra, Florida, Navitas is a specialty lending company providing equipment finance credit services to small and medium-sized businesses nationwide. As of September 30, 2017, Navitas reported outstanding loans and leases totaling approximately $350M in the aggregate comprised of a diversified group of business borrowers operating in multiple industries and geographic markets. Navitas serviced over 17,000 finance contracts with a total original value of over $750M for approximately 14,500 business customers. The transaction value is estimated to total approximately $130M, with 35% of the consideration to be paid in United common stock and 65% to be paid in cash. The acquisition is expected to be accretive to United's earnings per share by approximately 20c in the first full year of operations and is consistent with United's stated acquisition criteria pertaining to tangible book value and targeted internal rates of return. The transaction is expected to be completed during the first quarter of 2018.