CIT Bank, the U.S. commercial bank subsidiary of CIT Group Inc., entered into an agreement to acquire Portsmouth, New Hampshire-based Direct Capital Corporation, a provider of financing to small and mid-sized businesses. The transaction will expand CIT’s small-business and middle-market lending and equipment leasing capabilities and will allow Direct Capital’s highly experienced team of professionals to offer CIT’s broad range of products and services to its customers.
As part of the acquisition, Christopher J. Broom, Co-founder and Chairman of Direct Capital, and James P. Broom, Chief Executive Officer of Direct Capital, will continue to lead the business. The acquisition is expected to close in the third quarter following the satisfaction of regulatory requirements and contractual conditions to closing. Terms of the agreement were not 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 U.S. economy. I look forward to working with Chris, Jim and the entire Direct Capital team and building on their success.”
Since its founding 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 employs 250 individuals. In 2013, it was named to the Inc. 500/5000.
Christopher J. Broom said, “We are excited to join the CIT family, which will allow us the opportunity to build upon our established business model of providing small and mid-sized businesses access to the capital they need to grow and prosper. CIT understands the importance of customer service and has built a reputation over the past 100 years of serving these sectors.”
Established in 1993, Direct Capital is a financial technology company that delivers financial solutions for small and medium sized businesses, franchisors, and equipment and technology sellers. The company is headquartered in Portsmouth, N.H. and operates offices in New York, California, and Georgia.
Founded in 1908, CIT is a financial holding company with more than $35 billion in financing and leasing assets. It provides financing, leasing and advisory services to its clients and their customers across more than 30 industries. CIT maintains leadership positions in middle-market lending, factoring, retail and equipment finance, as well as aerospace, equipment and rail leasing.