Navient’s $155m acquisition shows the importance of being Earnest
“We will create and deliver consumer-centric education credit products for the digital age”
US asset management firm Navient will acquire education finance company Earnest for $155 million in cash as it hunts out new markets.
As part of Navient, Earnest will continue as a “distinct brand” and will be led by its current management team, including founders Louis Beryl and Ben Hutchinson. Navient says Earnest clients will continue to get the same rates and terms.
Jack Remondi, president and CEO, Navient, says Earnest brings “data science, digital marketing and technology” and “together, we will create and deliver consumer-centric education credit products for the digital age”.
According to Navient, the company is expected to originate nearly $1 billion in student loan refinancing loans in 2017.
Effective 4 October 2017, Navient states it will suspend its remaining share repurchase programme through year end 2018 to allocate capital towards growing the education lending business and building book value. The company’s annual dividend of $0.64 per share is unchanged.
Closing of the transaction is expected in the fourth quarter of 2017, subject to customary closing conditions.
Headquartered in Delaware, Navient has offices in New York, Pennsylvania, Indiana, Tennessee, Texas, Virginia, and other locations.
