AUSTIN, Texas and DENVER, May 04, 2021 (GLOBE NEWSWIRE) -- RateGenius Loan Services, Inc. (“RateGenius”) and AUTOPAY Direct, Inc. (“AUTOPAY”) today announced they have entered into an agreement to combine in an all-stock merger of equals. The strategic combination will create the most diversified consumer marketplace for automotive finance and refinance, while marrying market-leading innovation, best-in-class operations and proven scale. As a result of the merger, the combined company will provide even more choice for consumers and continue to provide the market’s best lending rates and loan savings while delivering volume growth to its lender network and business partners.
The combined company creates a differentiated experience for its marketplace participants; consumers get access to one of the broadest lending marketplaces through an end-to-end digital lending process, while channel partners and lenders benefit from aggregated loan supply and demand via APIs and embeddable co-branded and white labeled user experiences.
Both companies have enjoyed years of high growth as consumers increasingly embrace digital lending and as auto finance activity continues to shift outside the dealership.
“The almost $1.4 trillion auto debt market is now the third largest consumer loan category leaving consumers in need of a better option,” declared Christopher Speltz, CEO of RateGenius. “Over the last several years, more savvy consumers are taking advantage of online, digital first lending processes, low interest rates, strong vehicle collateral values and lenders that have excess deposits and thus a strong desire to grow their auto refinance asset category. This merger will strongly drive these trends and expand and enhance consumer loan savings.”
“We will stand and lead at the intersection of several important banking trends including growing consumer awareness of vehicle refinancing, the markets’ increasing acceptance of digital lending, and partnerships with fintech companies,” stated Seth Meyer, Co-CEO of AUTOPAY.
The Companies employ over 500 team members in their Austin and Denver hubs who are all mission-driven to reduce the cost of borrowing for their customers. Working with over 180 lenders, in all 50 states, the companies will facilitate over $2 billion in automobile financing in 2021.
Lenders now have a clear choice when selecting a fulfillment partner for their auto lending needs. This merger brings together two best-in-class businesses with the operational strength necessary to provide and ensure safe, sound and growing lending operations.
“The auto finance paradigm is shifting dramatically. It is our intent to provide the highest quality operations that consumers and lenders can rely on when seeking to execute successful auto financings outside of the dealership,” added Jeff Hutcheson, CO-CEO of AUTOPAY.
The transaction, which is expected to close within the next 60 days, has been unanimously approved by the board of directors of both companies.
Portico Capital serves as exclusive financial advisor to AUTOPAY. AUTOPAY is a portfolio company of FM Capital. RateGenius is a portfolio company of Tritium Partners.
About RateGenius
RateGenius is a technology company which has created a proprietary, web-based platform that has assisted hundreds of thousands of consumers nationwide in refinancing auto loans to more favorable terms. By utilizing its network of more than 150 lenders, RateGenius has successfully facilitated more than 400,000 loans worth more than $9 billion. The company's proprietary LOS (loan origination system), educational content, and customer-experience-focused business approach have been instrumental in its success. RateGenius' online application is quick, simple, and available from the comfort of your home at apply.rategenius.com.
About AUTOPAY
AUTOPAY offers a mobile friendly auto loan finance platform that utilizes API plugins and easily embeddable white label user experiences to deliver consumers from online sources, direct marketing campaigns, channel partners, and proprietary distribution channels. Our solution is a full-service technology and service platform providing finance solutions from pre-qualification to title perfection to loan servicing.
Media Contact
John Stavinga
CSG
610-212-8515
media@rategenius.com