MBNA to Acquire Nexstar
MBNA announced this morning that is has signed a definitive agreement to acquire Nexstar Financial.
Founded in 1999, Nexstar is a leading business process outsourcer in the home finance market. Nexstar's highly scaleable platform for originating and processing home finance products will enable MBNA to offer private label and co-branded home equity loans through its more than 5,000 affinity partners. Nexstar's state-of-the-art technology also will enable MBNA to significantly reduce its costs to originate home equity loans and enhance the Customer experience in this rapidly growing industry.
Commenting on the transaction, Richard K. Struthers, a Vice Chairman of MBNA, said, "By integrating the Nexstar platform with our existing operations, MBNA will provide private label and co-branded home equity loans through our many affinity group partners, further broadening our relationships with these groups. Our affinity partners will be able to offer a broad array of home loan products to their millions of members with the confidence that the loan origination process will be handled smoothly and efficiently. The Nexstar platform is a perfect fit with MBNA's existing affinity business model, and the winning attitude of the people of Nexstar is a great match as well."Nexstar Chief Executive Officer Rick Thornberry said, "The people of Nexstar have built the industry-leading home finance loan processing platform. We have taken pride in delivering that platform to a wide range of clients in ways that meet their specific business needs. Now, by joining MBNA, we are positioned to expand the Nexstar platform in support of MBNA's extensive client base. This is a terrific opportunity to fuel the growth of the Nexstar platform, and to make a significant contribution to MBNA's expansion in the mortgage financing business. In our business models and our approach to customers, it's hard to imagine two more complementary businesses than Nexstar and MBNA."
Mr. Struthers added, "Nexstar's business model is similar to MBNA's. Like MBNA, Nexstar offers co-branded financial products in a well-controlled environment characterized by a commitment to performance and service. The Nexstar platform will help us streamline the loan origination process and offer partners and Customers an exceptional experience. Nexstar also strengthens MBNA's position in the home equity market by giving us an additional tool for evaluating risk and for selecting which home equity loans to retain and which to sell, depending on the Customer's risk profile."
Mr. Struthers also said, "We are pleased that Nexstar's management team, and the people of Nexstar, will be joining MBNA. They bring deep experience in the home finance industry and a comprehensive knowledge of the technology and systems that will become an important part of MBNA's expanding home equity loan business."
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