In a transaction valued at approximately $9 billion, Capital One has signed a definitive agreement with GE Capital to acquire its Healthcare Finance unit. Capital One said it will acquire $8.5 billion of GE Capital’s healthcare-related loans and its Healthcare Financial Services business. In a separate news release, GE said the Capital One transaction was valued at approximately $9 billion.
“This transaction is another example of the value generated by GE Capital’s strong businesses and exceptional teams as we continue to demonstrate speed and execute on our strategy to sell most of the assets of GE Capital,” said Keith Sherin, GE Capital chairman and CEO.
“We are on track to reduce our ending net investment (ENI) by $100 billion by the end of 2015 and expect to be substantially done with our exit strategy by the end of 2016,” he added.
“This is a strategic investment in a specialty industry segment that we have been building out for the past several years,” said Michael Slocum, president of Capital One’s Commercial Bank. This addition will catapult us to a leading market position in providing financial services to the healthcare sector.”