Associates First Capital said Monday that it is buying Arcadia Financial Ltd., a Minneapolis-based subprime automobile lender, for about $200 million in cash.

Shareholders of Arcadia would also receive an as-yet-undetermined share of residual cash flows from the company's loan securitizations.

The acquisition, expected to close in the first quarter, would triple the number of car loan customers served by Associates, to 750 million. Through Sept. 30, Arcadia originated $1.8 billion in loans and Associates made about $750 million of loans. -- Olaf de Senerpont Domis

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