In the second auto finance acquisition in two weeks, First Investors Financial Services Group Inc. has agreed to sell itself to private equity firm Aquiline Capital Partners LLC for $100 million in cash.
Aquiline Capital will pay $13.87 per First Investors share, a 39% premium to the stock’s $10 closing price on Sept. 25. The stock has climbed 32% in the past year.
Founded in 1988, Houston-based First Investors offers indirect and direct lending, as well as portfolio acquisitions and third-party servicing. The indirect lending business serves auto dealers in 37 states, offering financing programs to consumers with credit scores of 500 to 650, including those who have gone through a bankruptcy process.
"The acquisition by Aquiline is the result of a thorough and competitive process focused on maximizing value for our stockholders," said Tommy A. Moore Jr., First Investors president and CEO, in a prepared statement. "Our board unanimously supports this transaction and believes that the acquisition will continue to expand the company's leadership position in the market it serves. As a management team, we are very excited to be partnering with Aquiline, a firm with an outstanding reputation, valuable industry expertise and capital resources that will enhance our ability to grow our company."
Aquiline Capital is a private equity and venture capital firm focused on the financial services industry. It was founded in 2005 and typically invests between $100 million and $400 million per transaction, according to a Bloomberg Businessweek profile.