"The addition of Dividend Finance to our renewable energy portfolio enhances the scale of Fifth Third’s growing digital service capabilities and supports the Bank’s commitment to environmental leadership in financial services," said Greg Carmichael, Fifth Third chairman and CEO. "Together, we will help our customers with innovative, technology-driven financial solutions."

Dividend Finance was founded in 2013 in San Francisco and is one of the top national solar lenders. With a vision of creating a more efficient and sustainable world by enabling more investment in renewable energy, Dividend pioneered a financing model to improve the outcome for all parties and help accelerate the growth of solar across the U.S. Dividend’s POS technology platforms enable contractors and homeowners to easily access financing for solar and home improvement projects. LL Funds is the majority shareholder in Dividend Finance.

"The Dividend team shares Fifth Third’s commitment to solutions that improve customers’ lives and has a strong track record of innovation, growth and excellent customer experience," said Tim Spence, president of Fifth Third Bank. "We’re thrilled to add Dividend’s best-in-class lending experience, which meets customers’ evolving preferences and helps them accelerate their transition to a more sustainable future."

"We are proud and excited to join the Fifth Third team. Their focus on tech-driven innovation and leadership on ESG matters is well known and will complement our culture. Dividend’s ability to leverage the extensive balance sheet, advantaged cost-of-funds and broader resources of Fifth Third will provide a tremendous edge to our customers and enable us to continue to accelerate growth," said Eric White, Dividend Finance CEO.

"We are proud to have supported and partnered with Dividend Finance during their growth and consider them to be a leader among their peers," said Raj Mundy, partner at LL Funds and Executive Chairman of Dividend Finance. "We are delighted to see the company become part of the Fifth Third family, and confident that its growth and momentum will be further enabled by this transition."

Offering a wide range of loan products across multiple proprietary POS platforms, Dividend Finance has built a one-stop solution that enables contractors to offer the best financing experience for their customers. Dividend’s digital lending platform is designed for customizability, providing contractors with the tools to win new business and borrowers with a streamlined process for financing home improvement projects. In addition to a robust contractor network and a leading technology platform, Dividend has a national customer footprint focused on prime and super-prime borrowers.

Fifth Third is focused on three environmental sustainability strategies: reducing the Bank’s environmental footprint, managing climate-related risks and supporting our customers and communities in the transition to a more sustainable future. In 2020, Fifth Third set its first sustainable finance goal of $8 billion to be achieved by 2025. This includes lending and financing for solar, wind, geothermal, biomass and hydropower. As a result of this acquisition and Fifth Third’s existing leadership position in providing renewable solutions to commercial clients, Fifth Third is actively assessing a new sustainable financing target. Additionally, Fifth Third’s Environmental, Social and Governance (ESG) report outlines the Bank’s full climate strategy.

The acquisition is subject to customary closing conditions, including regulatory approvals. Fifth Third currently expects the transaction to close in the second quarter of 2022. Macquarie Capital served as financial advisor and Dentons served as legal counsel to Dividend Finance.