E*Trade Bank acquires Ganis Credit Corporation
26 November 2002 | 3348 views | 0
Financial services provider E*Trade Bank is to acquire the consumer finance business Ganis Credit Corporation, a US-based subsidiary of Deutsche Bank for an estimated $101 million.
The acquisition includes Ganis's consumer loan portfolio and origination platform for recreational vehicle, marine and motorsport loans.
E*Trade says the system will allow it to provide integrated, real-time services for origination, servicing and private-label affinity lending.
The purchase price also includes a premium paid on approximately $1.7 billion in consumer loans. The diversified online brokerage will also assume servicing for $3.5 billion in consumer loans.
Christos Cotsakos, chairman of the board and CEO, E*Trade Group, comments: "The transaction provides ETrade Financial with a new origination and servicing platform, high credit-quality assets and an experienced management team."
The transaction will be financed through the sale of a portion of E*Trade Bank's held-for-sale mortgage portfolio and the firm expects the deal to close by early 2003.