Wintrust's latest acquisition could present deposit opportunity

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Wintrust Financial in Rosemont, Ill., has acquired a finance management company.

The $30 billion-asset Wintrust said in a press release Friday that it paid $51.9 million in cash for Elektra Holding, the parent company of Chicago Deferred Exchange.

Chicago Deferred Exchange helps clients with 1031 tax exchanges by helping them defer certain gains from property sales. Wintrust said such transactions typically generate customer deposits between the sale of a property and the purchase of a replacement property.

About $1 billion in deposits flowed through Chicago Deferred Exchange this year, Wintrust said.

“CDEC’s services will augment the comprehensive range of services that Wintrust provides to our customers in the commercial real estate market,” Edward Wehmer, Wintrust president and CEO, said in the release. “This transaction also provides Wintrust with a new fee-generating business and a significant new potential source of low-cost deposits.”

Mary Cunningham who continue to serve as CEO of Chicago Deferred Exchance.

The deal is expected to be slightly accretive to Wintrust’s 2018 earnings per share.

Kirkland & Ellis and Colonnade Securities advised Elektra. Schiff Hardin advised Wintrust.

Wintrust said in a separate press release Monday that it formed an accounts receivables finance group to help midsize companies. Wintrust Receivables Finance will be a national business focused on clients with $10 million to $300 million in annual revenue.

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