Citizens Financial Group has agreed to purchase the online higher-education planning platform College Raptor in a deal that would bolster the bank's suite of products for students and their families.
The deal, announced Tuesday, would give Providence, Rhode Island-based Citizens a platform that offers tools for comparing potential financial-aid packages as well as campus match scores and admission chances. Financial terms were not disclosed. Citizens is one of several U.S. banks with a sizable presence in the private student lending business.
"The acquisition of College Raptor offers unique opportunities to engage with prospective college students and their families as they navigate the college search and selection process," Chris Ebeling, executive vice president and head of student lending at the $226.7 billion-asset bank, said in a press release.
"This innovative platform further strengthens our ability to provide personalized advice and insights during this important stage of their lives, while also bolstering our commitment to financial empowerment," Ebeling added.
Upon finalization of the agreement, which is currently expected to be in the fourth quarter of this year, College Raptor will become a wholly owned subsidiary of Citizens.
Bill Staib, chief executive and co-founder of Iowa City, Iowa-based College Raptor, said that Citizens plans to expand the platform and to offer a "richer and more valuable" experience.
"College Raptor's mission is to empower students and their families as they plan their college journey, and this combination will deepen our capabilities while connecting users with a best-in-class financial partner," Staib said in the release.
Chief Executive Bruce Van Saun said the Rhode Island bank doesn’t “need to be that greedy” after reporting a 34% rise in net interest income during the second quarter. He laid out plans to trim the bank’s sails in both commercial and consumer lending.
Citizens' private student loan products include one-time, multi-year approval loans that can potentially cover the cost of an undergraduate education, with added soft credit checks each time additional funds are needed. The bank also offers programs for graduate students that are tailored to their intended field of study.
Citizens has been active in M&A in recent years as part of a strategy that includes developing its wealth management presence and widening its U.S. footprint. Recent deals include the
Citizens got legal advice on the transaction from Goodwin Procter. Wedbush Securities was financial advisor to College Raptor, and Pugh Hagan Prahm was its legal advisor.
