MetaBank in Souix Falls, S.D., has agreed to buy the operations of AFS/IBEX Financial Services, an insurance premium finance company in Dallas.
A purchase price was not announced. The deal is expected to close by the end of this year. The acquisition includes an $80 million loan portfolio, along with the AFS brand.
The acquisition of AFS, which provides short-term financing for commercial property, is expected to diversify the $1.9 billion-asset MetaBank's lending business, J. Tyler Haahr, the company's chief executive, said in a press release Tuesday.
"We believe that insurance premium finance is a perfect complement to our national deposit franchise to diversify our business and build our loan portfolio," Haahr said.
John Holsan, president of AFS, is expected to join MetaBank as president of its new insurance premium finance division. MetaBank will also hire all of AFS employees and maintain the AFS brand.
MetaBank was advised by Sterne, Agee & Leach and Katten Muchin Rosenman. AFS was advised by Colonnade Advisors, as well as the law firms of Whitaker Chalk Swindle & Schwartz and Bracewell & Giuliani.