TIAA Bank announced the acquisition of a $1.5 billion portfolio of healthcare equipment leases and loans from GE Capital’s Healthcare Equipment Finance (HEF) business. This significantly expands TIAA Bank’s commercial banking business and enhances its ability to provide a full range of financial solutions to institutional clients and serve an even greater number of healthcare providers. The sale comes as GE Capital seeks to become smaller and more focused.

In addition, the parties have entered into a five-year vendor financing agreement for U.S. customers of GE Healthcare. GE Healthcare Equipment Finance’s leadership, infrastructure and salesforce will be integrated into GE Healthcare in 2019 and the team will continue to originate and service transactions under a co-branding arrangement with TIAA Bank.

The acquired healthcare portfolio includes loans and leases to approximately 1,100 hospitals as well as 3,600 physician practices and diagnostic and imaging centers across the United States. Assets financed include imaging, monitoring, respiratory, surgical, ultrasound and lab equipment.

“TIAA is dedicated to delivering financial solutions to institutional clients, including those in the healthcare industry,” said Lori Dickerson Fouché, senior executive vice president and CEO of Retail & Institutional Financial Services at TIAA. “This transaction expands our ability to meet the complete financial needs of hospitals and universities we serve, allowing them to fund their operations, achieve strategic goals and continue to provide high-quality care to millions of Americans.”

“This agreement with GE Capital supports our long-term asset growth plan and provides scale and portfolio diversification while significantly expanding our on-going relationship with GE, a top-tier healthcare equipment manufacturer,” said Blake Wilson, CEO of TIAA’s Retail Financial Services and chairman and CEO of TIAA Bank. “The healthcare industry is dynamic and ever-changing, and the need for new healthcare equipment continues to grow at a rapid pace. This deal will allow TIAA Bank and GE’s healthcare finance business to continue to help clients with their financing needs for years to come.”

“This is an excellent outcome for GE Capital, GE Healthcare and its customers,” said Trevor Schauenberg, president and CEO of GE Capital Industrial Finance. “TIAA Bank is a well-known, highly respected institution and we look forward to working with its outstanding team, ensuring a strong foundation for the future and seamless continuity of service for our U.S. customers. With this portfolio sale and financing alliance, we are expanding our funding capability and improving our competitive offerings for our customers.”

TIAA Bank for many years has offered a wide range of commercial banking solutions to its clients, including business banking, term loans, lines of credit, real estate and equipment financing. The addition of this portfolio will enable TIAA to provide an even more comprehensive range of services to this strategic growth market.