Newtek (NASDAQ: NEWT) Acquires United Capital Source
Newtek (NASDAQ:NEWT), a leading provider of key business and financial solutions, has acquired NY-based United Capital Source (UCS). Terms of the deal were undisclosed except that UCS has become “wholly owned” which means that all of the company’s shares were acquired. UCS CEO Jared Weitz was previously featured on the cover of our Sept/Oct 2015 magazine, who at the time was only 33-years old. Weitz will remain CEO of UCS.
In their Q3 earnings statement, Newtek CEO Barry Sloane said of the deal, “We continue to seek strategic portfolio investments that meet our goal of investing in companies that fit our business services solutions footprint with price targets in the range of 4x EBITDA to 7x EBITDA. That said, we are happy to announce, that just last week, we closed our investment in United Capital Source, LLC, a lead generator for commercial financing companies, making it Newtek’s newest wholly owned portfolio company. We believe this investment will prove both synergistic and symbiotic to our overall strategy and enable United Capital Source’s management to expand their footprint by offering our business services solutions to our referral database, new customer referrals, alliance partners and independent commercial enterprises.”
In a statement to deBanked, Jared Weitz said “We are excited to be partnered with such a forward-thinking company. I have no doubt that with this partnership we will be able to service more SMB’s by offering more than just Funding Solutions.”
Newtek provides several services including payroll, insurance and payments. Their wholly owned subsidiary Newtek Small Business Finance, LLC (“NSBF”) is the largest non-bank SBA 7(a) lender by dollar volume of approved loans. Newtek’s market cap is currently around $300 million, not far behind OnDeck at $360 million. The company generated $28.5 million of investment income for the first nine months of the year.Last modified: November 1, 2017