Capital One said it will acquire $8.5 billion of GE Capital’s healthcare-related loans and its Healthcare Financial Services business. The move was made to expand Capital One’s capabilities in the healthcare sector.
“This is a strategic investment in a specialty industry segment that we have been building out for the past several years. This addition will catapult us to a leading market position in providing financial services to the healthcare sector,” said Michael Slocum, president of Capital One’s Commercial Bank. “The GE Capital, Healthcare Financial Services team shares our commitment to providing value-added advice and creative financing solutions to the healthcare industry. Together we will deliver a powerful combination of industry-leading expertise and expanded capabilities to our clients.”
In a separate news release, GE said the Capital One transaction was valued at approximately $9 billion. GE also announced it signed an agreement with another buyer to sell approximately $600 million of HFS real estate equity investments.
Darren Alcus, president of GE Capital, Healthcare Financial Services, will become the president of Capital One’s healthcare finance business. The acquisition of GE Capital, Healthcare Financial Services and the addition of the experienced management team will add to Capital One’s already strong healthcare lending business and create a leading healthcare banking platform.
“We are excited to join forces with the healthcare finance professionals at Capital One – they share our vision for providing the financial solutions that this complex industry demands,” said Alcus. “The healthcare sector offers tremendous potential for growth, and I am confident that together we will offer the best-in-class expertise and tailored financial products that meet the needs of healthcare businesses across the country.”
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