Financial advisor to KBC Financial Products
Reverse mortgage leader Vertical Lend to be acquired by KBC Financial Products
August 08, 2007 (Melville, NY) - Vertical Lend announced today that it has recently signed a definitive agreement to be acquired by KBC Financial Products, a wholly-owned subsidiary of Belgian-based KBC Bank NV. The acquisition is expected to accelerate Vertical Lend’s objective to increase market share and brand recognition in the reverse mortgage lending market through its highly recognized Senior Lending Network. Vertical Lend (VL) is the fifth largest provider of home equity conversion mortgages (HECM). KBC Financial Products (KBCFP) is a market-leading specialist in equities and equity, credit and fund-linked derivatives and structured credit products.
“Our acquisition of Vertical Lend provides a tremendous opportunity for our company to participate in the growing reverse mortgage market,” said Thomas Korossy, chief executive officer of KBCFP. “Our strength in capital markets should enable Vertical Lend to provide the products and expanded distribution channels needed to broaden their offerings in the U.S.”
“We expect this synergistic relationship to produce a significantly positive change in the type of reverse mortgages that are being written today,” said David Peskin, chief executive officer of Vertical Lend. “KBCFP has the products and the financial strength, and we are a leader in marketing and distribution.”
Financial details of the transaction have not been announced. The deal is expected to close at the end of the month, subject to certain conditions, including final regulatory approvals.