GE completed the previously announced sale of its GE Capital, Healthcare Financial Services U.S. lending business, representing aggregate ending net investment of approximately $8.3 billion, to Capital One.

The business will be combined with Capital One’s existing healthcare banking business to form Capital One Healthcare, a provider of financial services to the industry with over $11 billion in total outstanding balances. The new organization will offer financing solutions that help support and grow organizations, providing financing to companies in various sectors, including healthcare services, hospitals, senior housing, medical offices, pharmaceuticals, medical devices and healthcare IT.

“With today’s announcement, we are excited to formally unite these two strong teams under the new umbrella of Capital One Healthcare,” said Michael Slocum, president of Capital One’s commercial bank. “Together, we share a common culture and values that reflect our dedication to building strong, lasting relationships with our clients and providing them with exceptional service and the tailored financial solutions they need. With the strength of this combination, we are poised to capitalize on the tremendous growth potential we see in the healthcare sector.”

Darren Alcus, former president of GE Capital, Healthcare Financial Services, has been named president of Capital One Healthcare, and will report to Slocum.

“This is an exciting opportunity for our entire Capital One Healthcare team and we look forward to continuing to serve and grow with our many customers in the dynamic healthcare marketplace,” said Alcus. “Our new combination truly represents a best-in-class group of industry domain experts and financing professionals, with a proven track record of delivering critical financial solutions for clients across the healthcare spectrum. Together we will offer an even broader array of capabilities to our clients, with the same high level of quality and execution they have come to expect.”

As previously announced, GE is embarking on a strategy to focus on its high-value industrial businesses and is selling most GE Capital assets.

The HFS transaction releases approximately $1.5 billion of capital. GE Capital believes it is on track to deliver about $35 billion of dividends to GE under this plan, as previously announced.

“GE Capital is making great progress in closing the sales of our businesses that we announced earlier this year. We’re pleased that we can continue to transfer our businesses and employees to strong financial services firms like Capital One who are committed to growing the business,” said Keith Sherin, GE Capital chairman and CEO. “We thank our HFS team for their contributions to GE Capital and to our customers, and wish them a successful future as they join Capital One.”