RateGenius Loan Services Inc. and Autopay Direct Inc. have entered into an agreement to combine in an all-stock merger of equals. The strategic combination will create a consumer marketplace for automotive finance and refinance.
Autopay is a portfolio company of FM Capital. RateGenius is a portfolio company of Tritium Partners.
“The almost $1.4 trillion auto debt market is now the third largest consumer loan category leaving consumers in need of a better option,” declared Christopher Speltz, CEO of RateGenius. “Over the last several years, more savvy consumers are taking advantage of online, digital first lending processes, low interest rates, strong vehicle collateral values and lenders that have excess deposits and thus a strong desire to grow their auto refinance asset category. This merger will strongly drive these trends and expand and enhance consumer loan savings.”
“We will stand and lead at the intersection of several important banking trends including growing consumer awareness of vehicle refinancing, the markets’ increasing acceptance of digital lending, and partnerships with fintech companies,” stated Seth Meyer, co-CEO of Autopay.
“The auto finance paradigm is shifting dramatically. It is our intent to provide the highest quality operations that consumers and lenders can rely on when seeking to execute successful auto financings outside of the dealership” added Jeff Hutcheson, co-CEO of Autopay.
Portico Capital serves as exclusive financial advisor to Autopay.