Aquiline Capital Partners, a private-equity firm based in New York, is buying First Investors Financial Services Group, a Houston auto lender, for $100 million.
Under the deal, which the companies' announced Wednesday, First Investors' shareholders would receive $13.87 for each share of the closely held company's common stock they own.
First Investors offers loans to car buyers via automotive dealerships in 37 states. The company says it serves primarily consumers who have emerged from bankruptcy or whose credit scores suggest a medium to high risk of the borrower's being unable to repay the loan.
The company earned roughly $8.1 million during its fiscal year that ended April 30, an increase of 145% from a year earlier.
"The acquisition by Aquiline is the result of a thorough and competitive process focused on maximizing value for our stockholders," Tommy A. Moore, Jr., First Investors' chief executive of First Investors, said in a news release.
The companies said they expect to close the transactions soon as practicable following customary approvals.
Jacobs Asset Management, a private equity firm with offices in New York and El Segundo, Calif., owns 42% of First Investors' outstanding common stock and is the company's largest shareholder.
Keefe, Bruyette & Woods, FalconBridge Capital Markets and the law firm of Thompson & Knight advised First Investors on the deal. Aquiline was advised by Macquarie Capital and the law firm of Willkie Farr & Gallagher.