Cleveland-based KeyBank is planning to purchase the online lending business of Darien-based Laurel Road Bank.
The deal, which was announced yesterday, does not include Laurel Road’s three bank branches located in Darien, Rowayton and Fairfield. The announcement also did not include financial details of the transaction, or details about how Laurel Road Bank will continue its business.
Approximately 140 Laurel Road employees will join KeyBank as part of the deal. Laurel Road had about 185 full-time equivalent jobs as of September 2018, according to the FDIC. The employee teams will continue to be based in New York, Connecticut and California.
“We are thrilled to have the opportunity to partner with Laurel Road and to continue expanding their business,” Chris Gorman, vice chairman and president of banking at KeyBank, said in a statement. “Key is focused on building targeted scale against discrete client segments through distinctive platforms. Laurel Road’s model of focusing on advanced degree professionals is not only consistent with Key’s approach but also complements our focus on specific sectors more broadly. We have invested significant resources in building our own strategic partnerships with fintech companies and we have yet to encounter a firm that so clearly matches our business and cultural approach to serving clients.”
The acquisitions will give KeyBank a platform that has a proven ability to attract and serve professional Millennial clients. The digital lending platform includes a student loan refinancing platform totaling more than $4 billion in loan originations to date. It also includes an end-to-end consumer lending platform that offers a streamlined, transparent experience with customized loan products.
The company introduced a platform for mortgages using the same secure lending technology to offer homebuyers and owners a streamlined experience from application to payment in 2018, the same year the bank rebranded from Darien Rowayton Bank to Laurel Road Bank.
“We are excited to combine our technological expertise with Key’s industry expertise,” Gary Lieberman, founder and chairman of Laurel Road Bank, said in a statement. “We could not have found a better strategic partner to help take Laurel Road to the next level and continue our mission of serving Millennial customers with technology that meets them where they are in their financial journey. Together, we will work to create an innovative digital financial experience for all of our customer segments.”
The acquisition is subject to customary closing conditions, including regulatory approvals. KeyCorp was advised by Debevoise & Plimpton LLP, while Laurel Road Bank was advised by RBC Capital Markets and Fried Frank.
