CIT Bank acquires Direct Capital Corporation in small- to mid-sized companies bid

CIT Bank, the US commercial bank subsidiary of CIT Group has completed its acquisition of Portsmouth, New Hampshire-based Direct Capital Corporation, a provider of financing to small and mid-sized businesses.

Nelson J. Chai, president of CIT Group and chairman and CEO of CIT Bank (pictured) explained: “We are very pleased to complete this acquisition as it will further expand our small business and middle market lending and leasing capabilities. Direct Capital is known for its market-leading customer service and proprietary online lending platform, and we look forward to working together to enhance our competitive position and returns.”

Since its founding in 1993, Direct Capital has provided more than 80,000 small and mid-sized businesses with over $2.25 billion in equipment, franchise and vendor financing and lending solutions to grow their businesses. Direct Capital has assets of approximately $500 million and employs 250 individuals. In 2013, it was named to the Inc. 500/5000 and Monitor 100 lists of top growth companies. 

The acquisition closely follows news that CIT Aerospace has provided a $27 million senior secured credit facility to Virgo Investment Group LLC, a private investment management firm, to finance its acquisition of four Boeing 737-700 aircraft leased to GOL, an airline based in Rio de Janeiro, Brazil. Each aircraft is equipped with CFM56 engines.

The financing was provided by CIT Bank and terms of the transaction were not disclosed.