Lending Club, a San Francisco, California-based online credit marketplace, acquired Springstone Financial for $140m in cash and stock.
The acquisition aims to expand expanding the services Lending Club offers. Founded in 2007 by CEO Mike Gilroy, Jim Donovan and Mike Donovan, Springstone provides financing options for consumers looking to finance private education and elective medical procedures through a network of over 14,000 schools and healthcare providers. It operates two primary websites, https://secure.springstoneplan.com/ and https://secure.yourtuitionsolution.com/.
To fund the acquisition, the company closed a $65m equity round and raised $50m in debt financing. Investors in the equity deal included funds and accounts managed by T. Rowe Price Associates, Wellington Management Company, BlackRock and Sands Capital.
Led by CEO Renaud Laplanche, Lending Club matches creditworthy borrowers with investors looking for yield. As of April 17, 2014 more than $4 billion in personal loans have been originated through the platform, enabling more than 250,000 consumers to achieve their financial goals.
The company recently launched a small business loan platform designed to help small business owners access affordable credit.