Regions Bank announced this morning it is acquiring Ascentium Capital, a Texas-based firm focused on small businesses.
Terms of the deal with Ascentium’s majority owner Warburg Pincus were undisclosed. The transaction is expected to close during the second quarter of 2020, subject to customary closing conditions.
Ascentium Capital is the largest independent equipment finance lender in the United States, with approximately $2 billion in loans and leases as of year-end and originations of $1.5 billion in 2019. It has more than 460 employees and partners with almost 4,000 manufacturers, dealers and distributors.
Ronnie Smith, senior executive vice president and head of the Regions Corporate Banking Group, said Ascentium is a strong company “known for providing America’s small businesses access to the capital they need to grow.”
“Leveraging the technology, speed and convenience that Ascentium Capital is known for in combination with Regions’ broad spectrum of banking solutions provides a meaningful opportunity to attract new customers and deepen relationships across our combined customer base," Smith said.
The deal provides Regions with a tech-enabled equipment finance organization with same-day credit decisions and funding for small business customers.