US bank Capital One has agreed to acquire approximately $8.5bn (7.63bn) of healthcare-related loans and its healthcare financial services business.
Capital One will be paying a 6% premium to acquire the healthcare-related loans, held within GE’s Healthcare Financial Services business. The company believes that this move will provide a "strong platform for future growth and returns."
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The company expects to complete the acquisition in the fourth quarter of 2015.
Michael Slocum, president of Capital One’s commercial bank, said: "This is a strategic investment in a specialty industry segment that we have been building out for the past several years. This addition will catapult us to a leading market position in providing financial services to the healthcare sector."
Darren Alcus, president of healthcare financial services at GE Capital, will become the president of Capital One’s healthcare finance business.
Alcus said: "We are excited to join forces with the healthcare finance professionals at Capital One – they share our vision for providing the financial solutions that this complex industry demands. The healthcare sector offers tremendous potential for growth, and I am confident that together we will offer the best-in-class expertise and tailored financial products that meet the needs of healthcare businesses across the country."
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By GlobalDataLast week GE announced that it would retain and grow its equipment finance arm in the UK, which it would incorporate as part of its UK bank group
