Command Credit Corp., a developer of secured credit card programs, said it has completed its acquisition of Franklin Credit and Leasing Corp.
Franklin, based in Plainview, N.Y., provides leases and serves as a loan broker in financing of heavy construction equipment, airliners, ships, barges, and other equipment.
Command, based in Rockville Centre, N.Y., said it hopes to use Franklin's credit and leasing expertise to broaden Command's range of services.
Incorporated in 1988, Command has struggled to enter the secured card business, in which cardholders leave a deposit as collateral for a line of credit. The company has accumulated capital, however.
Command chairman William G. Lucas and Franklin chairman Robert Pascuzzi issued a joint statement that said the acquisition will greatly enhance the capacity of both companies.
Mr. Lucas said Franklin will maintain "virtual autonomy" as a wholly owned subsidiary.
"There will be a great deal of cross-selling of services by the marketing groups of each company," Mr. Pascuzzi said. His company could offer Command's credit card services in addition to leasing options.
Change to Former Merger Deal
On another expansion front, Command said it will amend its Feb. 11 merger agreement with Suburban Bankshares, parent of the $170 million-asset Suburban Bank in like Worth, Fla.
Command plans to invest an additional $2 million, or $6 million in total, to purchase 85% of the Florida company.
Previously, the transaction was structured as a "50-50 swap." That approach did not require "change in control" filings with regulators but would have given Command firm control over management.
The added funds will provide Suburban with the capital it needs to meet demands of the Federal Deposit Insurance Corp. The agency has imposed a cease-and-desist order that requires it to raise Capital, boost loan-loss provisions, and hire a new chief executive.
Command said it has informed regulators of its amended offer and is in the process of preparing a formal application for change of control with the Federal Reserve Board and state regulators.