Banco Santander Central Hispano has come to an agreement to acquire 90% of Drive Financial Services, a US motor financing company and a subsidiary of HBOS, for $651 million.

<p>Banco Santander is to pay HBOS $465 million for its 65% share in the Dallas, Texas-based company, while the remaining $186 million will purchase shares held by members of Drive&#0039;s management. Thomas Dundon, currently president and COO of Drive, will retain 10% ownership and has agreed to a long-term contract to become the company&#0039;s new CEO.<br /><br />Drive Financial Services specializes in providing motor financing solutions for people with limited or below-average credit histories who are unable to obtain financing from traditional sources.<br /><br />Transferring ownership of Drive to a multinational financial institution with an international focus in auto finance is the right move to continue the phenomenal success story, said Allan Garraway, CEO of Drive. <br /><br />Completion of the transaction is subject to receipt of regulatory approvals but is expected before the end of 2006.</p>