Attached files
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| EX-99.2 - NAVIENT TO ACQUIRE EARNEST - INVESTOR DECK - NAVIENT CORP | navienttoacquireearnestpr.pdf |
| 8-K - NAVIENT CORP - NAVIENT CORP | form_8-k.htm |
NEWS RELEASE
For immediate release
Navient
announces agreement to acquire Earnest,
a leading financial technology and education finance
company
WILMINGTON, Del., Oct. 4, 2017 – Navient, a leading
provider of asset management and business processing solutions,
announced it has entered into an agreement to acquire Earnest, a
leading financial technology and education finance
company.
“Combining
Earnest’s best-in-class data science, digital marketing, and
technology with Navient’s industry and capital markets
experience create an exciting platform to deliver value for
consumers and investors,” said Jack Remondi, president and
CEO, Navient. “Together, we will create and deliver
consumer-centric education credit products for the digital
age.”
“I
am proud to share the momentous news that Earnest is joining the
Navient family of companies,” said Louis Beryl, cofounder and
CEO, Earnest. “By pairing Earnest’s capabilities and
technology with Navient’s reach and resources, we can affect
change at incredible scale.”
Founded
in 2013, Earnest serves financially responsible, digitally native
consumers who have been underserved by traditional banks. The
company is expected to originate nearly $1 billion in student loan
refinancing loans in 2017.
As part
of Navient, Earnest will continue as a distinct brand and will be
led by its current management team, including founders Louis Beryl
and Ben Hutchinson. Earnest clients will continue to enjoy the same
customer service, rates, terms, and benefits.
Under
the terms of the agreement, Navient will acquire Earnest for $155
million in cash. Effective October 4, 2017, Navient will suspend
its remaining share repurchase program through year end 2018 to
allocate capital towards growing the education lending business and
building book value. The company’s annual dividend of $0.64
per share is unchanged. Closing of the transaction is expected in
the fourth quarter of 2017, subject to customary closing
conditions. An investor presentation will be filed with the SEC and
made available at Navient.com/investors. In addition, executives
will further comment at the previously announced third quarter
earnings call on Oct. 18.
J.P.
Morgan Securities LLC acted as financial advisor to Navient.
Barclays acted as financial advisor to Earnest.
* * *
Navient (Nasdaq: NAVI) is a leading provider of asset
management and business processing solutions for education,
healthcare, and government clients at the federal, state, and local
levels. The company helps its clients and millions of Americans
achieve financial success through services and support.
Headquartered in Wilmington, Delaware, Navient employs team members
in western New York, northeastern Pennsylvania, Indiana, Tennessee,
Texas, Virginia, and other locations. Learn more at
navient.com.
Earnest is a technology company using data science, smarter
design, and exceptional service to rebuild financial services.
Founded in 2013 on the belief that financially responsible people
deserve better options and access to credit, Earnest’s
lending products are built for a new generation seeking to reach
life’s milestones. The company’s mission is to
democratize access to high-quality financial services. Learn more
at earnest.com.
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Contact:
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Media:
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Patricia
Nash Christel, 302-283-4076,
patricia.christel@navient.com
Eva
Pullano, 917-599-6366, press@earnest.com
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Investors:
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Joe
Fisher, 302-283-4075, joe.fisher@navient.com
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