Capital One Financial Agrees to Acquire AmeriFee; Expands Reach in Specialty Finance Markets With Leading Provider of Lending Solutions for Elective Dental, Orthodontic, Vision and Cosmetic ...
FALLS CHURCH, Va., May 9 /PRNewswire/ -- Capital One Financial (NYSE: COF) today announced it has agreed to acquire AmeriFee Corporation, the nation's leading provider of patient financing solutions for elective dental, orthodontic, vision and cosmetic procedures.
The initial price was $81.5 million, with $65 million to be paid in cash and the remainder in common stock. Additional payments may be made over the next three years depending on the financial results and performance actually achieved by AmeriFee. The acquisition is not expected to have any effect on Capital One 's ability to achieve 30 percent growth in earnings per share in 2001.
AmeriFee, a privately held company with more than 160 employees based in Southborough, MA, will become a wholly owned subsidiary of Capital One. Current management of AmeriFee will continue to manage its operations as a subsidiary of Capital One.
Richard D. Fairbank, Capital One's Chairman and Chief Executive Officer, said: "AmeriFee is a leader in patient financing solutions and a natural fit with Capital One. This transaction represents another important step in Capital One's strategy of acquiring market leaders in fast-growing segments that complement our core business."
AmeriFee co-founders Bill Brady and Jim Donovan said: "We are delighted to be joining what we consider to be the most progressive financial services company in the country. Capital One's focus on product innovation and marketing will provide us with a wider array of products for our valued customers as we continue to expand our leadership position in patient financing."
AmeriFee, founded in 1992, is a pioneer in providing patient financing solutions for elective medical procedures. The company markets through medical providers who refer patients seeking elective orthodontic, dental, vision and cosmetic procedures. AmeriFee has the exclusive endorsement of the American Association of Orthodontists, and 12,000 health care providers located throughout the 50 states offer its programs.
About Capital One
Headquartered in Falls Church, Virginia, Capital One Financial Corporation (http://www.CapitalOne.com ) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending products. Capital One's subsidiaries collectively had 36.5 million customers and $31.6 billion in managed loans outstanding as of March 31, 2001. Capital One, a Fortune 500 company, is one of the largest providers of MasterCard and Visa credit cards in the world. Capital One trades on the New York Stock Exchange under the symbol "COF" and is included in the S&P 500 index.
Capital One cautions that its current expectations for its and AmeriFee's earnings are forward-looking statements and actual results could differ materially due to a number of factors, including competition in the credit card and medical lending industries and general economic conditions affecting consumer income and spending, which may affect consumer borrowing, bankruptcies, defaults and charge-offs. A discussion of these and other factors can be found in Capital One's annual reports and reports filed with the Securities and Exchange Commission, including, but not limited to, Capital One's report on Form 10-K for the year ended December 31, 2001.
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SOURCE Capital One Financial Corporation
CONTACT: Sandi Abadinsky, Corporate Communications, of Capital One Financial, 703-205-1063, email@example.com/