Truist Bank, a wholly-owned subsidiary of Truist Financial, has agreed to buy Service Finance Company (Service Finance) in a deal valued at $2bn.
The acquisition of the home improvement lender will expand the scale and capabilities of Truist Bank’s point-of-sale (POS) financing business.
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Service Finance, which is domiciled in Boca Raton, Florida, leverages proprietary technology to offer payment solutions to over 14,000 home improvement dealers and contractors.
Truist’s POS lending business currently includes Sheffield Financial, a POS lender in the power equipment, power sports, trailer, and other consumer products segments.
Together, Service Finance and Sheffield will serve over 250 manufacturers, associations and other sponsors spanning approximately 29,000 contractors and dealers, Truist Financial added.
As per the terms of the agreement, Mark Berch, president and founder of Service Finance and his team will join the POS lending unit of Truist’s National Consumer Finance and Payments group.
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By GlobalDataTruist POS lending unit head Jeff McKay said: “Service Finance’s client-centric model, coupled with Truist’s financial strength and commitment to POS lending, perfectly positions us to continue to provide distinctive, secure and successful client experiences.
“Just like Sheffield, Service Finance partners with leading brand names in their industry and has earned a reputation for unparalleled client service and delivering innovative solutions.”
Berch said: “As a former home improvement contractor, I know how important it is to help contractors and their customers get access to convenient and attractive financing so our end-customers can spend more time enjoying the moments that matter, in the place that matters the most—their homes.
“This is a dynamic market with tremendous potential, and joining Truist only improves our outlook for growth.”
The deal is subject to licensing and regulatory approvals and other customary closing conditions.
It is expected to close late in the fourth quarter of 2021.
