Equipment lenders see January M&A jump

Equipment lenders and lending service providers entered the mergers and acquisitions market to begin 2025 as both look to strengthen their offerings in the new year. 

Dext Capital to acquire Honour Capital’s equipment finance team 

Portland, Ore.-based Dext Capital said it will acquire Minneapolis-based Honour Capital’s equipment finance team for an undisclosed amount, according to a Jan. 6 Dext Capital release. 

The acquisition aligns with Dext’s strategy to expand its financing products by integrating complementary strengths to better serve businesses nationwide, according to the release. 

The partnership provides greater access to capital, strong cultural alignment, and increased flexibility to accelerate growth, Honour Capital Chief Executive Shea Huston stated in the release. The collaboration is expected to enhance customer support through tailored financing solutions and exceptional service. 

Under the agreement, Honour Capital will retain Honour Ag and certain lease assets. The addition of the Honour Capital team is expected to strengthen Dext’s direct lending capabilities. 

Brookshire Hills acquires Brookline Bankcorp and subsidiaries for $1.1B 

Boston-based Berkshire Hills Bancorp, the parent company of Berkshire Bank, and Brookline Bancorp, the parent company of Brookline Bank, Bank Rhode Island and PCSB Bank, have agreed to merge in an all-stock transaction valued at approximately $1.1 billion, and is expected to close in the second quarter of 2025, according to a Dec. 16 Berkshire release. 

The merger will result in a franchise with $24 billion in assets and 148 branch offices. The transaction, unanimously approved by both boards, will see Brookline shareholders receive 0.42 Berkshire shares for each Brookline share. 

To support the transaction, Berkshire will issue $100 million in common stock at $29 per share, with proceeds bolstering the bank’s balance sheet and regulatory capital ratios, according to the release. The transaction will consolidate four bank charters into a single Massachusetts state-chartered bank, with Brookline Bank serving as the consolidated charter.  

The combined company will trade on the New York Stock Exchange under a yet-to-be-announced name and ticker symbol, while the new executive headquarters will be in Boston, with operations centers throughout the Northeast, according to the release. 

Brookline Bank reported $31.5 million in equipment financing in the fourth quarter, up 110.3% year over year, according to a Jan. 29 earnings release, despite its subsidiary Eastern Funding winding down specialty vehicle operations. 

Cadence Bank to merge with First Chatham Bank 

Houston-based Cadence Bank will merge with Savannah, Ga.-based FCB Financial Corp., the holding company for First Chatham Bank, according to a Jan. 22 Cadence release. 

Cadence Bank is a regional banking franchise with approximately $50 billion in assets and more than 350 branch locations across the south and Texas, according to the release. First Chatham Bank operates eight branches and was the first community bank chartered in Chatham County since 1989 upon being founded in 2002.  

First Chatham reported total assets of $590 million, total loans of $329 million, and total deposits of $510 million as of Sept. 30, 2024. 

Under the agreement, Cadence Bank will issue 2.3 million shares of common stock and pay $23.1 million in cash for all outstanding shares of FCB Financial Corp., with the transaction valued at approximately $103.6 million based on Cadence’s 10-day moving average price of $34.98 on January 21, 2025, according to the release.  

The transaction has also received unanimous approval from the boards of directors of both companies and is expected to close in the third quarter of 2025, pending regulatory and shareholder approval. 

Abrigo acquires Integrated Financial Solutions  

Austin, Texas-based Abrigo, a provider of compliance, credit risk and lending solutions for financial institutions, has acquired Hasbrouck Heights, N.J.-based Integrated Financial Solutions (IFS), the provider of IFSLeaseWorks, a cloud-based lease and loan origination system, for an undisclosed amount, according to a Jan. 23 Abrigo release.  

The acquisition aligns with Abrigo’s strategy to enhance efficiency for the more than 2,400 financial institutions it serves by integrating end-to-end automation across the lease and loan lifecycle, according to the release.  

IFS enhances Abrigo’s automation capabilities, particularly in equipment and vehicle financing. IFSLeaseWorks streamlines processes from transaction structuring and pricing to credit decisioning, documentation, billing and remarketing, according to the release..  

The move comes amid rising demand for equipment leasing solutions, with the U.S. equipment leasing and software market growing at an annualized rate of 7% in the second quarter of 2024, according to the Equipment Leasing & Finance Foundation.  

Tamarack and TURBO-Lease partner to enhance AI in equipment finance 

Tamarack Technology and Better Programs, owner of Turbo-Lease software, have formed a strategic partnership to support AI in equipment finance, according to a Jan. 14 Tamarack release. 

The collaboration originated from a joint project with mutual client LSI Equipment Leasing, according to the release. The combined technologies capture and structure leasing data, enabling AI-based automation to improve workflow speed and decision-making. 

Through the partnership, Turbo-Lease’s contract management system now integrates Tamarack AI Products and the TrailView customer service portal, providing finance companies with a solution for operational efficiency, customer service enhancement and financial performance optimization, according to the release. The partnership with Tamarack aims to expand Turbo -Lease’s functionality to meet the evolving needs of equipment finance providers. 

Turbo -Lease offers lease accounting, contract management and funding solutions to equipment finance companies. Better Programs, Inc. has sold more than 950 Turbo-Lease licenses across the U.S. and Canada.  

The third annual Equipment Finance Connect at the JW Marriott Nashville in Nashville, Tenn., on May 14-15, 2025, is the only event that brings together equipment dealers and lenders to share insights, attend discussions on crucial industry topics and network with peers. Learn more about the event and register here.