Credit card lender Capital One Financial has agreed to acquire General Electric’s (GE) US healthcare finance arm for nearly $9bn.
GE Capital Healthcare Financial Services (HFS) offers financing to senior housing, hospitals, medical offices, outpatient services and pharmacies, among others.
However, GE Capital will retain the financing operations related to its industrial businesses, including a unit that provides health-care equipment financing to GE Healthcare customers and others.
Following the sale, the unit’s president and CEO Darren Alcus as well as its management team and employees will join Capital One.
Capital One in a statement said it expects this acquisition to provide a strong platform for future growth and returns.
Commenting on the deal, Capital One Commercial Bank president Michael Slocum said: "This is a strategic investment in a specialty industry segment that we have been building out for the past several years. This addition will catapult us to a leading market position in providing financial services to the healthcare sector."
The sale is part of General Electric’s strategy to divest $100bn of financial assets by end of 2015 and return to its industrial roots.
The deal is expected to close in the fourth quarter of 2015.