Ameris Bancorp in Atlanta has acquired a fintech that provides equipment-finance loans to small and midsize businesses.
The $22.5 billion-asset company said in a press release Monday that it bought Balboa Capital is Costa Mesa, Calif. Ameris did not disclose the price it paid, though the company said it paid cash.Ameris said the acquisition will increase its dealings in
point-of-sale financing. Balboa Capital's originations are expected to exceed
$415 million this year.
“Balboa
Capital has helped tens of thousands of businesses access growth capital with
instant credit decisions and same day funding," H. Palmer Proctor Jr., Ameris’
CEO, said in the release.
"We
look forward to providing Balboa Capital's lending technology and bringing a
new digital lending option to more of our business customers,” Proctor added. “Just
as important, Balboa Capital brings more than 30 years of technology expertise
to Ameris.”
Patrick
Byrne, Balboa’s CEO, and Phil Silva, the fintech’s president, have joined Ameris.
Ameris
said it the deal should be 10% accretive to its 2022 earnings per share with “upside
potential from identified operating synergies.” It should take four years for
Ameris to earn back any dilution to its tangible book value.
Piper
Sandler and Covington & Burling advised Ameris. Keefe, Bruyette & Woods
and Moore & Van Allen advised Balboa.
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