Rosemont, IL – January 7, 2009 – Core Business Credit ("Core") and Velocity Financial Group ("Velocity") announced today their planned combination. This strategic combination will create a well-capitalized and highly efficient diversified commercial finance company. Core, an asset based lender, and Velocity, a venture debt finance and middle market equipment leasing company, will operate under one holding company.
"The combination of these businesses will enhance returns, strengthen our balance sheet and increase liquidity, while creating a more diversified suite of products," said Michael Haddad, CEO of Core Business Credit. "Most importantly, it positions us to better serve our clients and execute on our promise to bring both creative capital and reliable results to our customers."
"By bringing these firms together to create one platform, Core and Velocity are forming a much larger, more diversified specialty finance business," said Frank Cirone, CEO of Velocity. "The combined company will be positioned to not only weather the current economic storm, but also take advantage of attractive risk-return opportunities in this market."
Core and Velocity expect to consummate the combination by the end of the first quarter 2009.