P. M. BRIEFING : Transamerica to Acquire Nova
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First Interstate Bancorp said today it has agreed to sell its consumer lending unit Nova Financial Services to a subsidiary of Transamerica Corp. for about $108 million in cash.
The deal with Transamerica Finance Group Inc. will result in a pre-tax gain of more than $90 million, the Los Angeles-based banking company said.
First Interstate, which said in March that it would sell Nova to concentrate on consumer banking, said the transaction is expected to close in July, subject to regulatory approvals.
Nova had nearly $430 million in finance receivables outstanding as of March 31, the company said. With the acquisition of Nova, Transamerica’s total assets will increase by about 5% to $9.5 billion.
San Francisco-based Transamerica Finance Group is the nation’s third-largest independent finance company in terms of capital funds.
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