CIT agrees to acquire direct capital from technology-driven lender
Consumer finance

CIT agrees to acquire direct capital from technology-driven lender

NEW YORK AND NEW HAMPSHIRE – () –CIT Bank, the American commercial bank subsidiary of CIT Group Inc. (NYSE: CIT), a leading provider of commercial loans, leasing and advisory services, has entered into a deal to acquire the Portsmouth, New Hampshire-based company. Direct Capital Corporation, a financing provider for small and medium-sized businesses. The transaction will expand CIT’s small business and mid-market equipment lending and rental capabilities and enable Direct Capital’s team of highly experienced professionals to deliver 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 company. The acquisition is expected to close in the third quarter after meeting regulatory requirements and contractual conditions at closing. Terms of the deal were not disclosed.

“With its customer-centric approach and unique value-added technology platform, Direct Capital has established itself as a leader in providing fast, flexible and affordable financing to small and medium-sized businesses,” said declared Nelson J. Chai, President of CIT Group Inc., President and CEO of CIT Bank. “Direct Capital’s proprietary online lending platform, LendEdge, will complement our existing offerings for small and mid-sized businesses as we continue to provide financing to these important sectors of the US economy. I look forward to working with Chris, Jim and the entire Direct Capital team and building on their success. ”

Since its inception in 1993, Direct Capital has provided more than 80,000 small and medium-sized businesses with more than $ 2.25 billion in equipment, franchises, and supplier financing and lending solutions to grow their businesses. Direct Capital has assets of approximately $ 500 million and employs 250 people. In 2013, she was named to the Inc 500/5000 and Monitor 100 lists of high growth companies.

Christopher J. Broom said: “We are delighted to join the CIT family, which will give us the opportunity to build on our established business model of providing small and medium-sized businesses with access to the capital they need. need to grow and prosper. CIT understands the importance of customer service and has built a reputation over the past 100 years serving these industries. ”

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About Direct Capital Corporation

Founded in 1993, Direct Capital is a financial technology company that provides financial solutions to small and medium-sized businesses, franchisors, and equipment and technology vendors. The company is headquartered in Portsmouth, NH and operates offices in New York City, California and Georgia. www.directcapital.com

About CIT Bank

Founded in 2000, CIT Bank (FDIC Member, Equal Housing Lender) is the US commercial banking subsidiary of CIT Group Inc. (NYSE: CIT). It provides loans and leases to the small business, middle market and transport sectors. CIT Bank (BankOnCIT.com) offers a variety of savings options designed to help clients achieve their financial goals. As of March 31, 2014, it held over $ 13 billion in deposits and over $ 16.5 billion in assets. cit.com/CITBank

About CIT

Founded in 1908, CIT (NYSE: CIT) is a financial holding company with more than $ 35 billion in finance and leasing assets. It provides financing, leasing and advisory services to its clients and their clients in more than 30 industries. CIT maintains leadership positions in middle market loans, factoring,
retail
and equipment financing, as good as aerospace,
equipment
and rail leasing. CIT’s U.S. banking arm, CIT Bank (member of the FDIC), BankOnCIT.com, offers a variety of savings options designed to help clients achieve their financial goals. cit.com

Forward-looking statements

This press release contains forward-looking statements within the meaning of applicable federal securities laws which are based on our current expectations and assumptions regarding future events, which are subject to a number of risks and uncertainties that could cause that actual results differ significantly from those anticipated. . The words “expect”, “anticipate”, “estimate”, “anticipate”, “initiative”, “objective”, “plan”, “objective”, “project”, “outlook”, “priorities”, “target” “” Intend “,” evaluate “,” continue “,” begin “,” seek “,” may “,” would “,” could “,” should “,” believe “,” potential “,” continue Or the negation of any of these words or similar expressions is intended to identify forward-looking statements. All statements in this press release, other than statements of historical fact, including, without limitation, statements about our plans, strategies, outlook and expectations regarding future events and our financial performance, are statements. forward-looking statements that involve certain risks and uncertainties. While these statements represent our current judgment as to what the future may hold, and we believe these judgments are reasonable, these statements are not guarantees of financial events or results, and our actual results may differ materially. . Important factors that could cause our actual results to differ materially from our expectations include, among others, the risk that CIT will not be successful in implementing its strategy and business plan, the risk that CIT is not able to respond to and resolve major commercial and regulatory issues. , the risk that CIT will not be able to achieve the expected growth in revenue from its new business initiatives or the planned spending cuts related to improving efficiency, the risk that CIT will be delayed in the implementation of its branch strategy and the risk that CIT will be subject to liquidity constraints and higher funding costs. We describe these risks and others that could affect our results in section 1A, “Risk Factors”, of our last annual report on Form 10-K for the year ended December 31, 2013 and in our quarterly report on form 10-Q for the quarter. ended March 31, 2014, which has been filed with the Securities and Exchange Commission. Therefore, you should not place undue reliance on any forward-looking statements contained in this press release. These forward-looking statements speak only as of the date on which the statements were made. CIT assumes no obligation to publicly update or otherwise revise forward-looking statements, except as expressly required by law.

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