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Citizens (CFG) to Buy Online Planning Firm College Raptor
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Citizens Financial Group, Inc. (CFG - Free Report) is on an expansion spree. Earlier this week, the company announced a deal to acquire the online college planning platform, College Raptor, Inc.
The financial terms of the transaction, expected to close in the fourth quarter of 2022, were not disclosed. Following the completion, College Raptor will operate as a wholly-owned subsidiary of Citizens Financial.
Though shares of CFG have declined 5.7% since this announcement, the primary reason weighing on investor sentiments was serious macroeconomic concerns.
Based in Iowa City, Iowa, College Raptor is a college planning platform that 'matches prospective students to schools based on both academic and financial fit.' The firm provides solid content and tools to help prospective students evaluate and choose a college. Some of the tools include side-by-side comparisons of estimated aid packages, campus match scores and admission chances.
Chris Ebeling, EVP and head of student lending at Citizens Financial, said “The acquisition of College Raptor offers unique opportunities to engage with prospective college students and their families as they navigate the college search and selection process.”
Bill Staib, CEO and co-founder of College Raptor, stated, “Together with Citizens, we look forward to expanding our platform and offering families a richer and more valuable overall experience to help them realize their educational and financial dreams.”
CFG is among the top three private student lenders and offers several borrowing and refinancing options for “credit-qualified students, graduates, and their families.” As of Jun 30, 2022, almost 18% of the company’s retail loans comprised education and education refinance loans.
Conclusion
Backed by a robust liquidity position, Citizens Financial has been undertaking inorganic growth efforts to expand its product and service capabilities. This July, it announced the acquisition of Paladin Advisors, while in June, the company closed the buyout of DH Capital LLC.
Additionally, in April, the company acquired Investors Bancorp for $3.39 billion. This buyout, along with the acquisition of 80 East Coast branches and the national online deposit business from HSBC (completed this February), has created a strong franchise in the greater New York City and Philadelphia Metro areas and New Jersey by adding 234 branches.
Apart from these deals, in 2021, CFG closed the buyout of JMP Group and Willamette. These buyouts have not only strengthened the company’s balance sheet and created a strong foundation for revenue growth but also enabled Citizens Financial to expand its product capabilities and geographic reach.
Similar to Citizens Financial, several banks, including Truist Financial (TFC - Free Report) and JPMorgan (JPM - Free Report) , are undertaking inorganic expansion to diversify revenues and improve market share.
Truist Financial aims to continue bolstering its insurance business. In sync with this, the company, through its subsidiary, Truist Insurance Holdings, announced an all-cash deal to acquire BankDirect Capital Finance for $3.4 billion.
Following the completion (expected to occur in the fourth quarter of 2022) of the transaction, BankDirect will operate as a unit of AFCO Credit Corporation, which is Truist Insurance’s current premium finance operation in the United States.
To further modernize and bolster its payments processing platform, JPMorgan has announced a deal to acquire Renovite Technologies, Inc. The financial terms of the deal haven’t been disclosed yet.
Following the completion of the transaction, which is still subject to customary closing conditions, Renovite will become part of J.P. Morgan Payments. This will further help bring an integrated payment experience to its clients globally. It will aid J.P. Morgan Payments’ expansion efforts in the cloud and strengthen the company’s payments upgrading initiatives.
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Citizens (CFG) to Buy Online Planning Firm College Raptor
Citizens Financial Group, Inc. (CFG - Free Report) is on an expansion spree. Earlier this week, the company announced a deal to acquire the online college planning platform, College Raptor, Inc.
The financial terms of the transaction, expected to close in the fourth quarter of 2022, were not disclosed. Following the completion, College Raptor will operate as a wholly-owned subsidiary of Citizens Financial.
Though shares of CFG have declined 5.7% since this announcement, the primary reason weighing on investor sentiments was serious macroeconomic concerns.
Based in Iowa City, Iowa, College Raptor is a college planning platform that 'matches prospective students to schools based on both academic and financial fit.' The firm provides solid content and tools to help prospective students evaluate and choose a college. Some of the tools include side-by-side comparisons of estimated aid packages, campus match scores and admission chances.
Chris Ebeling, EVP and head of student lending at Citizens Financial, said “The acquisition of College Raptor offers unique opportunities to engage with prospective college students and their families as they navigate the college search and selection process.”
Bill Staib, CEO and co-founder of College Raptor, stated, “Together with Citizens, we look forward to expanding our platform and offering families a richer and more valuable overall experience to help them realize their educational and financial dreams.”
CFG is among the top three private student lenders and offers several borrowing and refinancing options for “credit-qualified students, graduates, and their families.” As of Jun 30, 2022, almost 18% of the company’s retail loans comprised education and education refinance loans.
Conclusion
Backed by a robust liquidity position, Citizens Financial has been undertaking inorganic growth efforts to expand its product and service capabilities. This July, it announced the acquisition of Paladin Advisors, while in June, the company closed the buyout of DH Capital LLC.
Additionally, in April, the company acquired Investors Bancorp for $3.39 billion. This buyout, along with the acquisition of 80 East Coast branches and the national online deposit business from HSBC (completed this February), has created a strong franchise in the greater New York City and Philadelphia Metro areas and New Jersey by adding 234 branches.
Apart from these deals, in 2021, CFG closed the buyout of JMP Group and Willamette. These buyouts have not only strengthened the company’s balance sheet and created a strong foundation for revenue growth but also enabled Citizens Financial to expand its product capabilities and geographic reach.
Shares of this Zacks Rank #3 (Hold) company have rallied 5.3%, underperforming the industry’s gain of 7.6% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Source: Zacks Investment Research
Similar to Citizens Financial, several banks, including Truist Financial (TFC - Free Report) and JPMorgan (JPM - Free Report) , are undertaking inorganic expansion to diversify revenues and improve market share.
Truist Financial aims to continue bolstering its insurance business. In sync with this, the company, through its subsidiary, Truist Insurance Holdings, announced an all-cash deal to acquire BankDirect Capital Finance for $3.4 billion.
Following the completion (expected to occur in the fourth quarter of 2022) of the transaction, BankDirect will operate as a unit of AFCO Credit Corporation, which is Truist Insurance’s current premium finance operation in the United States.
To further modernize and bolster its payments processing platform, JPMorgan has announced a deal to acquire Renovite Technologies, Inc. The financial terms of the deal haven’t been disclosed yet.
Following the completion of the transaction, which is still subject to customary closing conditions, Renovite will become part of J.P. Morgan Payments. This will further help bring an integrated payment experience to its clients globally. It will aid J.P. Morgan Payments’ expansion efforts in the cloud and strengthen the company’s payments upgrading initiatives.