Veritex Community Bank’s parent company Veritex Holdings has completed the acquisition of North Avenue Capital (NAC) for a cash consideration of $57.5m.
Under the terms of the agreement, three years after the completion of the deal, NAC will be eligible to receive an additional $5m in cash, which is subject to certain conditions.
The acquired firm will operate as a wholly-owned subsidiary of Veritex Community Bank but will retain its brand and existing office space.
Through the deal, Veritex Community Bank seeks to strengthen its presence in the United States Department of Agriculture (USDA) Business and Industry (B&I) lending market.
Additionally, the acquisition is part of the lender’s strategy to diversify revenue streams, provide gain on sale and loan servicing fees.
Texas-based Veritex Community Bank plans to leverage NAC’s loan sourcing technology to further develop its product offerings and services.
Veritex chairman and CEO Malcolm Holland said: “We are very excited to complete the acquisition of NAC. We have been interested in expanding our existing presence in the USDA lending space for a while now and we have been impressed by what we have learned about NAC and its people.
“This transaction provides us the opportunity to become the top player in the USDA B&I lending space and we look forward to working with the NAC team moving forward.”
Recently, Ando, which is also based in the US, raised $6m in a seed funding round led by TTV Capital.
Founded in 2021, Ando offers sustainable banking services.