Radius Bank in Boston has bought a national equipment finance business from NewStar Financial in Boston.

NewStar, a $6.6 billion-asset commercial finance company, said in a press release Thursday that it sold NewStar Equipment Finance to the $835 million-asset Radius for $140 million in cash.

The unit, which provides financing to middle-market companies, was formed in 2011. It is led by Steve O'Leary.

NewStar said in the release that the sale reflects its goal to move "from a bank-styled, diversified commercial finance company into a more specialized middle-market direct lender with a focus on managing assets for institutional investors."

Houlihan Lokey and Locke Lord advised NewStar.

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