Together, the companies provide technology solutions and services for lenders across the lending lifecycle, from originations and servicing to lease maturity management, remarketing and analytics, and digital engagement. Sagent also brings to the table technology that taps into the subscription service space.
Combined, the service providers will create an auto finance technology operation with 600 employees and 170 clients, ranging from captives to fintech startups, Charles Sutherland, Sagent’s chief product officer, told Auto Finance News. Sagent typically worked with national banks and captives, while Defi worked primarily with finance companies, regional banks and credit unions.
For now, the former rivals will operate as separate companies; once the merger is completed, all auto elements will retain Defi’s name. “Sagent will carry on as a brand, but more specific to mortgage and customer servicing,” Sutherland said. “Everything else becomes Defi Solutions.”
Sagent Auto will rebrand its King of Prussia, Pa.-based headquarters with Defi Solutions logos and move all content to Defi’s website. Sagent Auto employees will become Defi team members and the combined company will be led by Sagent’s Chief Executive Bret Leech.
“It’s been a four-to-five-month process getting to a point to sign the agreement,” Sutherland said, noting the companies had to go through regulatory review, which is natural when two competitors come together. “Regulatory review ensures [the merger] is beneficial for the clients, team members and partners,” he added. “It was a relatively rapid period.”
In the past 24 hours, the companies have communicated the change to clients. “The news is relatively fresh and familiar with what we’ve done with Sagent in the past when we separated from Fiserv last year,” Sutherland said.
Westlake, Texas-based Defi Solutions will host a “town hall meeting” today to address leadership changes and answer clients’ questions.
The “new” Defi Solutions will have the financial backing of Warburg Pincus, Bain Capital Ventures, and Fiserv, the companies noted.9 - Readers Like This Post