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ECN Capital Confirms Growth & Capital Strategy; Terminates INFOR Transaction

October 13, 2016, 07:25 AM
Filed Under: Industry News

ECN Capital Corp. announced that by mutual agreement, INFOR Acquisition Corp. (“IAC”) and ECN Capital have terminated the previously announced qualifying transaction that would have resulted in the acquisition of all of the outstanding shares of IAC by ECN Capital (the “IAC Arrangement”). ECN Capital’s growth and capital strategy remains on track and focused on positioning the Company as a North American leader in commercial finance.

ECN Capital’s growth and capital strategy is based on a combination of three factors:

  1. Driving profitable organic growth in each of its three core verticals where the Company has an established North American presence - Commercial & Vendor Finance, Rail Finance and Commercial Aviation Finance;
  2. Transitioning the Commercial Aviation and Rail Finance verticals to a combined on-balance sheet and fund management business model that allows for the efficient redeployment of capital and improved equity returns; and
  3. Positioning ECN Capital for tuck-in acquisitions in selected complementary segments in the North American commercial finance market that offer defendable growth opportunities and attractive yields.

“The IAC Arrangement was an attractively priced incremental option to capitalize this growth strategy,” said Steven Hudson, ECN Capital’s Chief Executive Officer. “As an investment-grade commercial finance company with more than $8.2 billion in owned and managed assets, ECN Capital is favourably positioned to access adequate internal and external funding sources to execute on its business plan and growth strategy. ECN Capital will continue its discipline as a prudent issuer of capital, respecting our shareholders’ interests,” added Mr. Hudson.

With total owned and managed assets of $8.2 billion, ECN Capital Corp. is one of North America’s leading equipment finance companies. ECN Capital operates across North America in three verticals of the equipment finance market (Commercial & Vendor Finance, Rail Finance, and Commercial Aviation Finance).

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