FREDERICKSBURG, VA – Collegiate Funding Services, Inc. (Nasdaq: CFSI) announced today that it has entered into an agreement to acquire International Education Finance Corporation (“IEFC”), a leader in providing international student loan programs.
IEFC is a marketer of federally guaranteed and private education loans, serving both U.S. students going abroad and international students coming to the U.S. Since 1995, the company has helped more than 30,000 students finance their international education by generating more than $700 million of student loans via financial aid office and affinity relationships. During 2004, IEFC generated more than $180 million of total loan volume for origination. Collegiate Funding Services expects the transaction to be immediately accretive to earnings in 2005. The terms of the transaction were not disclosed, however, the purchase price was not material.
“IEFC provides CFS an entry into the rapidly growing market for international education finance solutions and extends our campus-based relationships,” said J. Barry Morrow, chief executive officer and president of Collegiate Funding Services. “Their network of relationships with school financial aid officials will complement our school channel, and their product offerings and overall operations are an excellent fit with our existing business. With the increasing globalization of the economy, and the resulting growth in demand for cross-border education, international education finance is an attractive market niche.”
The acquired business will operate as a division of Collegiate Funding Services under the direction of IEFC’s president and founder, Dwight Peterson.
“Since 1995, IEFC has helped school financial aid officers as they seek financing solutions for students pursuing international education opportunities,” said Peterson. “We believe that our existing school relationships and our commitment to the growing international education market complements CFS’ current in-school programs.”
