Capital One has agreed to buy General Electric’s health-care finance unit for $9b. Capital One is buying loans ranging from hospitals to pharma companies...looking at the financials this looks like a very attractive place to also disrupt with FinTech
Known mostly as a retail bank and credit card lender, Capital One Financial COF +1.23% is pushing into the marketplace for healthcare finance through a $9 billion deal with General Electric GE +1.11% to buy a portfolio of loans to healthcare firms ranging from hospitals to pharmaceutical companies. The sale comes as GE is streamlining its operations and exiting financial service businesses that don’t tie back to its core industrial, power generation, aviation and oil and gas expertise. The deal, which isn’t expected to impact Capital One’s previously stated share buyback or dividend plans, is expected to close by the end of 2015. It is expected to provide GE roughly $1.5 billion in the company’s target of a $35 billion dividend payment to investors from its financial services exit.