Axos Bank to acquire Verdant Commercial Capital for $43.5M
Deal includes $4M premium to Verdant's book value
Axos Bank, the banking subsidiary of holding company Axos Financial, is set to acquire independent equipment leasing company Verdant Commercial Capital.
Under the Sept. 19 agreement, Axos will pay $43.5 million in cash, including a $4 million premium to Verdant’s book value, with closing expected on Sept. 30, according to a Sept. 22 Axos release. Verdant could earn up to $50 million in additional payments over four years if it generates a return on equity above 15%.
Cincinnati-based Verdant originates leases ranging from $50,000 to $5 million across six industry sectors and manages about $750 million in securitizations and $350 million in loans and leases. The deal is expected to boost Axos’ earnings per share by 2% to 3% in fiscal 2026 and 5% to 6% in fiscal 2027.
“This acquisition provides us with more scale and enhances our existing equipment leasing business with good risk-adjusted returns,” Axos President and Chief Executive Greg Garrabrants stated in the release. “We like Verdant’s specialization in vendor-based equipment leasing and believe we can scale this business profitably. Additionally, we see opportunities to cross-sell commercial deposits and floorplan lending to manufacturers and dealers in several industry verticals such as specialty vehicles, golf, sports and entertainment.”
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