Boston, MA – Capstone Partners LLC, a national investment banking advisory firm, announced today that it has successfully advised International Education Finance Corporation (“IEFC”) on its recent acquisition by Collegiate Funding Services, Inc. (NASDAQ: CFSI). Capstone initiated the transaction, assisted in the negotiations and acted as executive financial advisor to IEFC.
Collegiate Funding Services (“CFS”) expects the transaction to be immediately accretive to earnings in 2005. The terms of the transaction were not disclosed, however, the purchase price was not material.
“We were pleased to participate in such a meaningful transaction in the education finance sector,” said Capstone’s vice president Noah Brown. “IEFC has built the premier franchise in the international student loan market, and CFS offers a strong platform for continued growth and innovation.”
"IEFC provides CFS an entry into the rapidly growing market for international education finance solutions and extends our campus-based relationships," said J. Barry Morrow, chief executive officer and president of Collegiate Funding Services. "Their network of relationships with school financial aid officials will complement our school channel and their product offerings and overall operations are an excellent fit with our existing business. With the increasing globalization of the economy, and the resulting growth in demand for cross-border education, international education finance is an attractive market niche."
The acquired business will operate as a division of Collegiate Funding Services under the direction of IEFC's president and founder, Dwight Peterson. "Since 1995, IEFC has helped school financial aid officers as they seek financing solutions for students pursuing international education opportunities," said Peterson. "We believe that our existing school relationships and our commitment to the growing international education market complements CFS' current in-school programs."
Capstone Partners LLC is a leading national investment banking advisory firm dedicated to serving the needs of middle-market businesses. With offices in Boston and San Francisco, the firm maintains transactional and research resources in the technology & media, business services and specialty products industries.
International Education Finance Corporation is a marketer of federally guaranteed and private education loans, serving both U.S. students going abroad and international students coming to the U.S. Since 1995, the company has helped more than 30,000 students finance their international education by generating more than $700 million of student loans via financial aid office and affinity relationships. During 2004, IEFC generated more than $180 million of total loan volume for origination.
Collegiate Funding Services, Inc. (NASDAQ: CFSI) is a leading education finance company dedicated to providing students and their families with the practical advice and loan solutions they need to help manage and pay for the cost of higher education. Collegiate Funding Services also offers a comprehensive portfolio of education loan products and services - including loan origination, loan servicing, and campus-based scholarship and affinity marketing tools - to the higher education community.