economy over the next several years, as healthcare always remains a priority, irrespective of the economic environment. Moreover, the Healthcare sector is expected to grow faster than the U.S. Last year, Healthcare (as an S&P 500 sector) was up 25.3%, and the momentum continued in the first half of 2015 as well, with a rise of 9.6%. Michael Slocum, President of Capital One's Commercial Bank, said, “This addition will catapult us to a leading market position in providing financial services to the healthcare sector.” Further, Alcus added, “The healthcare sector offers tremendous potential for growth, and I am confident that together we will offer the best-in-class expertise and tailored financial products that meet the needs of healthcare businesses across the country.”Īs per Mitch Zacks' Market Insights, healthcare industry is well positioned for substantial growth in the years ahead. card portfolio from HSBC Holdings plc HSBC in 2012.Īs per Capital One’s latest quarterly filing, loans to healthcare industry constitute just about 5% of its total commercial loans as of Jun 30, 2015. in 2009, followed by ING Direct from ING Groep N.V. The company had acquired Chevy Chase Bank, F.S.B.
This deal, expected to further bolster Capital One’s healthcare lending operation, is the company’s fourth largest acquisition since 2008. With the completion of this transaction, GE will have sold nearly $78 billion of financial assets, and remain on track to shrink its banking business by $100 billion this year.Ī Good Expansion Strategy for Capital One Also, the company will retain HFS management teams and employees.įor GE, the deal marks a step in right direction, as it is in the process of divesting its financial services business. The unit also provides personalized financing solutions, which helps healthcare organizations to expand and grow.įollowing the completion of the deal, Darren Alcus, President of HFS, will serve as the President of Capital One's healthcare finance business. HFS offers finance to companies in several healthcare sectors including healthcare services, seniors housing, hospitals, medical offices, pharmaceuticals and medical devices. The transaction is expected to close by year-end 2015, subject to receipt of necessary regulatory approvals.
The company announced an agreement with General Electric Company GE to acquire roughly $8.5 billion of healthcare-related loans and its Healthcare Financial Services (“HFS”) business.Ĭapital One will be paying a premium of 6% to par value of all receivables as of Jun 30, 2015. Capital One Financial Corporation COF is expanding into lucrative healthcare lending.
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