Chicago based private equity firm GTCR has purchased a $1.4bn company Premium Credit from MBNA Europe, a subsidiary of Bank of America Corporation.
The acquirer has also joined hands with new CEO Andrew Doman and existing management of Premium Credit to recapitalize the company and further invest in the Company’s market-leading technology and services.
Following the completion of the deal, current CEO Nick Pearce will remain actively involved with Premium Credit as a consultant and member of the board of directors.
Its chief marketing officer and head of insurance premium finance Simon Moran will continue in his post, and Robert Allan will remain as CFO.
A consortium of banks including Barclays Capital, Lloyds Banking Group, Deutsche Bank, HSBC and Société Générale has supported the acquirer in the deal and also committed to provide long-term financing facility.
Established in 1988, Premium Credit delivers third party insurance premium finance and other fee-related payment financing services, enabling businesses and consumers to pay by periodic installments instead of a single annual payment.
Premium Credit was acquired MBNA in 2004 and subsequently transitioned to Bank of America’s ownership following MBNA’s sale in 2005.
Set up in 1980, GTCR is a private equity firm, which concentrates on investing in growth companies in the Financial Services & Technology, Healthcare and Information Services & Technology industries.