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Deals

TCF buys ECN Capital's service finance business for $2 billion

(Reuters) -Truist Financial Corp said on Tuesday it would buy ECN Capital Corp’s service finance business for $2 billion, aiming to expand its point-of-sale lending business.

After the deal’s expected close in the fourth quarter of 2021, ECN Capital intends to pay a special dividend of C$7.50 per common share, or about $1.5 billion, from the net proceeds to its common shareholders.

ECN Capital acquired Service Finance Holdings LLC for C$410 million ($327.53 million) in cash in 2017.

Truist said the acquisition would add to earnings per share from the second year after the deal close.

($1 = 1.2518 Canadian dollars)

Reporting by Mrinalika Roy in Bengaluru; Editing by Devika Syamnath

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