"HSBC's decision to exit the domestic factoring business was made as a result of our new strategic plan's emphasis on our core U.S. businesses," said Martin Glynn, President & CEO of HSBC Bank USA.
CIT Group Inc. has announced that its Commercial Services business unit has acquired substantially all of the U.S. factoring assets and liabilities of HSBC Bank USA. The acquired assets approximate $1 billion before assumed liabilities with net assets acquired of approximately $270 million. Terms of the deal were not disclosed.
"This transaction reflects CIT's corporate strategy to pursue growth opportunities that are synergistic with our core business lines and meet our return on equity targets," said Jeffrey M. Peek, President and COO of CIT Group Inc.
"We were very pleased to be able to reach agreement with CIT,” said Martin Glynn, "as their proven expertise as a leading provider in the industry is widely acknowledged."
