Sallie Mae Acquires Majority Interest in Arrow Financial Services
Transaction Marks Continued Expansion of Company's
Debt Management Operations
RESTON, Va., Sept. 17 /PRNewswire-FirstCall/ -- SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, today announced that it has acquired a majority interest in Arrow Financial Services, a full-service accounts receivable management company that purchases charged-off debt, conducts contingency collection work and performs third-party receivables servicing across a number of consumer asset classes. (Logo: http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a ) "Arrow Financial brings a wealth of assets to our debt management organization, including experienced management and a highly successful modeling capability," said Thomas J. (Tim) Fitzpatrick, president and chief operating officer, Sallie Mae. "The acquisition extends our reach in the debt recovery industry and expands the services we can offer our customers." The purchase price was not disclosed. The transaction is expected to be immediately accretive to 2004 earnings, and the company expects it to contribute between $.05 and $.07 per diluted share in 2005. Under the terms of the agreement, Sallie Mae has the option to purchase the remaining interest in Arrow Financial Services over a three-year period. "We are proud and excited to be joining the Sallie Mae family," said Jack Lavin, president and chief executive officer, Arrow Financial. "This relationship will open doors to new customers for our growing business." Arrow Financial employs nearly 1,400 individuals at locations in Niles, Ill., Gaithersburg, Md., San Diego, Calif., Whitewater, Wis., and Rockville Centre, N.Y. The company was founded in 1961 and has been under the continuous ownership and management of the Lavin family. It will retain its brand, successful strategy and senior management team. SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, is the nation's leading provider of education funding, managing nearly $95 billion in student loans for more than 7 million borrowers. The company primarily provides federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP), and offers comprehensive information and resources to guide students, parents and guidance professionals through the financial aid process. Sallie Mae was established in 1973 as a government- sponsored enterprise (GSE) called the Student Loan Marketing Association, and began the privatization process in 1997. Since then, the parent company name has changed, most recently to SLM Corporation. Through its specialized subsidiaries and divisions, Sallie Mae also provides an array of consumer credit loans, including those for lifelong learning and K-12 education, and business and technical products and services for colleges and universities. More information is available at http://www.salliemae.com. SLM Corporation and its subsidiaries, other than the Student Loan Marketing Association, are not sponsored by or agencies of the United States. Arrow Financial Services has over 40 years of experience in the accounts receivable management business and has achieved industry leadership by pursuing a business strategy of diversification across business line, asset class and stage of delinquency. Arrow also has developed a collection competency that combines industry-leading collection technology with a high- energy work environment. More information is available at http://www.arrow-financial.com. Statements in this release referring to expectations as to future earnings and operations, and other future developments are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve risks, uncertainties and other factors that may cause the actual results to differ materially from such forward- looking statements. Such factors include, among others, the ability to successfully integrate operations, the impact of competitors' responses, changes in terms of student loans and the educational credit marketplace arising from the implementation of applicable laws and regulations, and from changes in such laws and regulations, and changes in the demand for educational financing or in financing preferences of educational institutions, students and their families.
SOURCE Sallie Mae
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