Axos Bank to acquire Verdant Commercial Capital for $43.5M

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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