PHILADELPHIA (AP) – Resource America Inc. said Monday it will buy Dolphin Capital Corp., a lender catering to businesses that need money to rent equipment, for $167 million.
Dolphin Capital, which is owned by Lehman Brothers Holdings Inc., issues loans to businesses seeking money to rent small-ticket equipment such as photocopiers, fax machines and telephone systems.
Resource America will fuse the business with the company's Leaf Financial Corp. subsidiary, which issues loans for companies to rent small- and middle-ticket equipment.
The acquisition will contribute $100 million to Resource America's annual loans and bring assets under management to nearly $1.7 billion and will boost its annual origination capacity to more than $1 billion.
Leaf Financial's chief executive, Crit DeMent, said the deal was a way to capitalize on a “tremendously inefficient” marketplace.
Leaf, which is based in Philadelphia, was advised by Fairview Advisors LLC. The company did not say when it expects the deal to close.
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