US-based Capital One Financial has signed an agreement with General Electric Capital (GE Capital) to purchase its healthcare-related loans and Healthcare Financial Services (HFS) US lending business for $9bn.
GE Capital, Healthcare Financial Services offers financing solutions to healthcare companies, sponsors, investors and developers in the US.
The company provides solutions across different healthcare sectors, comprising senior housing, hospitals, medical offices, outpatient services, pharmaceuticals and medical devices.
Capital One Commercial Bank president Michael Slocum said: "This is a strategic investment in a speciality industry segment that we have been building out for the past several years.
"This addition will catapult us to a leading market position in providing financial services to the healthcare sector."
Under the deal, HFS president Darren Alcus, his management team and employees will join Capital One.
The acquired business will add a broad customer base and an expert risk management platform to Capital One, allowing it to expand the complete suite of lending and depository products, as well as treasury management services.
GE Capital CEO Keith Sherin said: "This transaction is another example of the value generated by GE Capital’s strong businesses and exceptional teams as we continue to demonstrate speed and execute on our strategy to sell most of the assets of GE Capital."
Subject to customary regulatory and other approvals, the transaction is expected to be completed in the fourth quarter of this year.
In a separate deal, GE entered an agreement with another buyer to sell $600m of HFS real estate equity investments.
Image: A CapitalOne branch located in Wake Village, Texas. Photo: courtesy of freakofnurture.