The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

OneMain to buy auto finance company for $115 million

OneMain Holdings in New York has agreed to buy Foursight Capital, an auto finance company.

OneMain said in a press release that it will pay $115 million in cash to Jefferies Financial Group for Foursight and its roughly $900 million loan portfolio. The deal is expected to close in the first quarter.

Foursight buys and services automobile retail installment contracts in 38 states. Its contracts are sourced through a network of dealers.

“Foursight is an attractive tuck-in acquisition giving us a seasoned team, scalable technology, tested credit models, a franchise dealer network and a high-quality loan portfolio to support our disciplined expansion into the auto lending business,” Doug Shulman, OneMain’s chairman and CEO, said in the release.

Jefferies LLC and Morgan Lewis & Bockius advised Jefferies. Barclays Capital and Covington & Burling advised OneMain.

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