Florida-based TIAA Bank is buying the $1.5 billion portfolio of healthcare equipment leases and loans from GE Capital’s Healthcare Equipment Finance (HEF) business.
The purchase will allow TIAA Bank to expand its healthcare business; GE Capital said it is seeking to become smaller and more focused. The portfolio includes more than 1,000 hospitals and 3,600 physician practices and imaging centers.
The parties have entered into a five-year vendor financing agreement for U.S. customers of GE Healthcare. The company’s HEF leadership, infrastructure and sales will be integrated into GE Healthcare in 2019. The team will continue to originate and service transactions under a co-branding arrangement with TIAA Bank.
“TIAA is dedicated to delivering financial solutions to institutional clients, including those in the healthcare industry,” said Lori Dickerson Fouché, senior executive vice president and CEO of Retail & Institutional Financial Services at TIAA.
GE Capital, headquartered in Norwalk, CT, is the financial services division of GE.