CIT Group Inc., a leading provider of commercial and consumer finance solutions and SunTrust Banks, Inc. announced that CIT has acquired substantially all of the factoring assets of Receivables Capital Management (RCM), a division of SunTrust. The acquired gross receivables approximate US$867m with acquired net assets of approximately US$238m. Terms of the deal were not disclosed.
"This transaction is consistent with CIT's strategy to pursue growth opportunities that have synergies with core business lines and meet our return on equity targets," said Jeffrey M. Peek, CIT's Chairman & Chief Executive Officer. "RCM is an attractive consolidation opportunity that complements our commercial finance portfolio enabling us to diversify our client base and cultivate new relationships."
SunTrust noted that the transaction "is consistent with SunTrust's strategic, business and financial priorities."
