Axos Financial acquires Verdant Commercial Capital for $43.5M

Axos Bank, the banking subsidiary of Axos Financial (AX), announced the acquisition of 100% of the membership interests in Verdant Commercial Capital, an independent equipment leasing company with approximately $1.1B of loans and leases on its balance sheet at August 31, including approximately $750M of on-balance sheet securitizations and $350M of loans and leases. The projected initial purchase price of $43.5M, including a $4M premium to book value, will be paid in cash at closing. The seller can earn incremental performance-based cash considerations over a four-year period after close if VCC generates a return on equity above 15%. The total earn-out is capped at $50M. Axos and the seller signed a member interest purchase agreement on September 19. The company expects to close the transaction on September 30.