Monday 02 March 2020

2 March 2020 - Alabama, US-based Regions Bank has agreed to acquire Texas-based equipment finance lender Ascentium Capital LLC from private equity firm Warburg Pincus, to expand equipment finance and commercial banking businesses, the company said.

Terms of the transaction were not disclosed.

Leveraging the technology, speed and convenience that Ascentium Capital is known for in combination with Regions' broad spectrum of banking solutions provides an opportunity to attract new customers and deepen relationships across the combined customer base.

The transaction provides Regions with a scalable, tech-enabled equipment finance organisation with same-day credit decisions and funding for small business customers.

Regions Financial Corp. (NYSE: RF), with USD 126bn in assets is a full-service provider of consumer and commercial banking, wealth management, and mortgage products and services. Regions serves customers across the South, Midwest and Texas, and through its subsidiary, Regions Bank, operates approximately 1,400 banking offices.

Ascentium Capital is an independent equipment finance lender in the United States with approximately USD 2bn in loans and leases as of year-end and originations of USD 1.5bn in 2019.

Partnering with nearly 4,000 manufacturers, dealers and distributors to finance essential-use equipment for small business customers, Ascentium Capital offers comprehensive financing solutions through more than 460 employees.

Morgan Stanley and Co. LLC served as financial advisor to Regions in connection with the transaction and Sullivan and Cromwell LLP served as its legal counsel. Piper Sandler and Co. served as financial advisor to Ascentium Capital and Cleary Gottlieb Steen and Hamilton LLP and Vinson and Elkins LLP served as legal counsel to Ascentium Capital and the sellers.