Triumph Bancorp in Dallas has acquired a factoring business.
The $5.4 billion-asset company said in a press release Wednesday that its Triumph Business Capital unit had bought assets from Transport Financial Solutions, a subsidiary of Covenant Logistics Group.
Triumph paid about $13.9 million in cash for $103.3 million of net accounts receivable and related transportation factoring assets. Transport Financial Solutions has the opportunity to earn $9.9 million if it meets certain targets over a 12-month period ending July 31, 2021.
Triumph and Covenant also entered into a referral arrangement.
“We developed a strong relationship with the Covenant team as a customer utilizing our TriumphPay platform,” Aaron Graft, Triumph’s CEO, said in the release. “The trust developed through that relationship led to discussions” the led to the deal.
Triumph said it expects the transaction, including cost savings from adding the portfolio to its platform, to be accretive to its earnings.
