N.Y. Private Equity Firm to Buy First Investors

In the second auto finance acquisition in two weeks, First Investors Financial Services Group Inc. has agreed to sell itself to private equity firm Aquiline Capital Partners LLC for $100 million in cash.

Aquiline Capital will pay $13.87 per First Investors share, a 39% premium to the stock’s $10 closing price on Sept. 25. The stock has climbed 32% in the past year.

Founded in 1988, Houston-based First Investors offers indirect and direct lending, as well as portfolio acquisitions and third-party servicing. The indirect lending business serves auto dealers in 37 states, offering financing programs to consumers with credit scores of 500 to 650, including those who have gone through a bankruptcy process.

“The acquisition by Aquiline is the result of a thorough and competitive process focused on maximizing value for our stockholders,” said Tommy A. Moore Jr., First Investors president and CEO, in a prepared statement. “Our board unanimously supports this transaction and believes that the acquisition will continue to expand the company’s leadership position in the market it serves. As a management team, we are very excited to be partnering with Aquiline, a firm with an outstanding reputation, valuable industry expertise and capital resources that will enhance our ability to grow our company.”

Aquiline Capital is a private equity and venture capital firm focused on the financial services industry. It was founded in 2005 and typically invests between $100 million and $400 million per transaction, according to a Bloomberg Businessweek profile.