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BofI Holding Acquires Certain Assets of Pacific Western Equipment Finance

April 04, 2016, 07:13 AM
Filed Under: Mergers & Acquisitions

BofI Holding, Inc., parent company of BofI Federal Bank (the “Bank”), announced that the Bank has closed an asset purchase agreement in which the Bank acquired certain assets and assumed certain operations of Pacific Western Equipment Finance (“EQF”), which are headquartered in Salt Lake City, from Pacific Western Bank. The transaction closed on March 31, 2016.

The Bank acquired certain assets and will operate on an ongoing basis the equipment lending operations of EQF as follows:

  • The Bank acquired approximately $140 million of equipment leases diversified across 36 states and Canada and over 50 industries
  • The Bank will retain approximately 25 existing employees, including EQF’s entire senior management team
  • The EQF team will become a part of the Bank’s C&I lending group and continue to conduct equipment lending operations at existing loan production and servicing office in Utah

The transaction is expected to be accretive to earnings per share within the first year post-closing, including the lease purchase price premium of approximately 2.5% and certain one-time expenses.

“We are very excited to welcome the Salt Lake City based EQF Group to the Bank,” stated Greg Garrabrants, President and Chief Executive Officer of BofI Federal Bank. “The addition of EQF immediately makes us an established lender in the equipment leasing space. EQF’s relationships and strong credit history provide a platform from which we can scale the business in an efficient and profitable way. It adds a new vertical to our C&I lending group, further diversifying our commercial lending capabilities.”

With roots dating back to the 1970s, EQF is an established leader in financing for business equipment to middle market companies. EQF provides direct and indirect financing on essential-use equipment ranging from $250,000 to $5 million. The current EQF management team operated independently as Marquette Equipment Finance from 2006 to 2012 before being acquired by Pacific Western Bank in January 2012.

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