- General Electric has reached a deal to sell its healthcare finance unit to Capital One for $9 billion, officials from both companies announced.
- The deal comes as GE continues to sell off the parts of its finance arm and refocuses on industrial goods.
- It will bring GE's sale of finance assets to about $78 billion; GE wants to divest $200 billion of those assets.
Reuters reported last week that a deal was close after Capital One outbid other suitors in an auction for the unit. GE has made it clear it wants to get out of the finance business to focus on its roots in manufacturing.
“This makes them (Capital One) a much more significant player going forward in the healthcare business,” Jeff Davis, managing director for the financial-institutions group at Mercer Capital, told Bloomberg Business. “And what it does is further diversify their asset base, which is positive for both equity and debt investors.”
The deal is expected to close before year's end.