Pathward discloses delay selling commercial insurance premium finance business

Pathward Financial in Sioux Falls, S.D., and AFS IBEX Financial Services said they remain committed to the sale of Pathward’s commercial insurance premium finance business despite a fast-approaching termination date.

AFS, a unit of Honor Capital Holdings, agreed in August to buy the business for a $31.2 million premium above the net asset value of the assets, which was $617.1 million on June 30. The deal has an Oct. 1 termination date.

The companies said the delayed closing “is primarily related to a longer-than-expected operational implementation timeline.” They said that hurdle should be crossed in time to close by Oct. 22.