NEW YORK (Reuters) - Wells Fargo Co (WFC.N) has agreed to buy the North American factoring business of a unit of GMAC, the U.S. auto finance company, Wells Fargo said on Wednesday.
Terms of the deal were not disclosed.
The bank said the factoring portfolio, now run by the commercial services division of GMAC Commercial Finance Group, has about 150 small and mid-sized clients representing some $4 billion in annual factored receivables volume. The business will be integrated into Wells Fargo Trade Capital.
Factoring companies typically provide cash worth less than the full value of the receivables, earning their cut when the money finally comes in from the customer.
GMAC, majority-owned by the U.S. government, is looking to sell units to focus on auto financing after multiple bailouts by Washington.
(Reporting by Jonathan Spicer; editing by John Wallace)
Deals
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