, flush with cash from the sale of its bond-insurance operation, agreed to spend $5.4 billion to acquire the commercial finance unit of Transamerica, a unit of
GE's commercial finance segment will buy the Transamerica units that finance manufacturers and industrial, consumer and recreational products dealers. It's adding about $8.5 billion of managed assets and about 1,700 employees.
GE sold its bond insurance unit, Financial Guaranty Insurance Corp., to a consortium led by
( PMI) for about $2 billion Monday.
Aegon will receive about $5.4 billion in cash, including a premium on managed assets of $300 million. GE will assume trade liabilities and third-party debt of $900 million and a securitized portfolio of $2.5 billion.
Aegon, which has been selling off core assets to shore up its capital structure, was up about 6% in Europe following news of the transaction. GE has yet to trade in volume in the premarket session.