US finance specialist CIT, whose main European operations are based in the Republic, has agreed to buy the UK and German vendor finance businesses of Barclays Bank.
The gross assets of the businesses, which provide asset finance to customers of industrial equipment manufacturers and suppliers, have been valued at approximately $2 billion (€2.57 billion).
New York-listed CIT Group, which provides financing and leasing products to commercial and consumer clients, said yesterday that the acquisition represents a "significant step" towards increasing its European presence.
It has been confirmed that all sales and administration staff in the vendor finance businesses being acquired will by retained by CIT.
Jeffrey M Peek, CIT chief executive and chairman, commented on the acquisition: "We are very pleased with this transaction as it represents a major growth opportunity within a core business, accelerates our international expansion and solidifies our position as a leading provider of global vendor finance solutions."
Completion of the acquisition depends on getting clearance from regulatory authorities. The deal is expected to close by the end of the year.
Some 400 of CIT's 600 European employees are based in Dublin, split between the company's vendor finance operation in Blackrock - which provides equipment finance and leasing to businesses - and the group's aircraft leasing business, Aerospace, which is based in the IFSC.
