ECN Capital to sell U.S. equipment finance business to PNC

Tue Feb 21, 2017 8:49am EST
 
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(Reuters) - Canada's ECN Capital Corp ECN.TO said on Tuesday it would sell its U.S. commercial and vendor finance business to PNC Financial Services Group (PNC.N: Quote) for about $1.25 billion in cash.

ECN Capital, which was spun out of Element Financial Corp last year, said the deal includes assets worth about $1.08 billion.

Pittsburgh, Pennsylvania-based PNC expects the deal to modestly add to its earnings this year. The transaction is expected to close in the second quarter.

ECN's $220 million deal with Infor, a special purpose acquisition company, fell apart last year due to opposition from Infor shareholders.

Citigroup Global Markets Inc was the financial adviser to PNC and Wachtell, Lipton, Rosen & Katz its legal adviser.

Macquarie Capital was ECN Capital's lead financial adviser, while Morgan Stanley and BMO Capital Markets assisted it.

(Reporting by John Benny in Bengaluru; Editing by Saumyadeb Chakrabarty and Maju Samuel)