Vertical Lend to be Acquired by KBC Financial Products, boosting reverse mortgages

MELVILLE, N.Y.–(BUSINESS WIRE)–Vertical Lend announced today that it has recently signed a definitive agreement to be acquired by KBC Financial Products, a wholly-owned subsidiary of Belgian-based KBC Bank NV. The acquisition is expected to accelerate Vertical Lend’s objective to increase market share and brand recognition in the reverse mortgage lending market through its highly recognized Senior Lending Network. Vertical Lend (VL) is the fifth largest provider of home equity conversion mortgages (HECM). KBC Financial Products (KBCFP) is a market-leading specialist in equities and equity, credit and fund-linked derivatives and structured credit products.

“Our acquisition of Vertical Lend provides a tremendous opportunity for our company to participate in the growing reverse mortgage market,” said Thomas Korossy, chief executive officer of KBCFP. “Our strength in capital markets should enable Vertical Lend to provide the products and expanded distribution channels needed to broaden their offerings in the U.S.”

“We expect this synergistic relationship to produce a significantly positive change in the type of reverse mortgages that are being written today,” said David Peskin, chief executive officer of Vertical Lend. “KBCFP has the products and the financial strength, and we are a leader in marketing and distribution.”

Financial details of the transaction have not been announced. The deal is expected to close at the end of the month, subject to certain conditions, including final regulatory approvals.

About Vertical Lend

Vertical Lend (VL) is one of the premier reverse mortgage services companies in the United States, offering originators complete lead-to-closed services through comprehensive marketing, lending, education and technology solutions. VL is dedicated to building the reverse mortgage industry by fostering strong partnerships with originators and by providing outstanding consumer education. Through VL’s national consumer education campaign, Senior Lending Network, VL educates millions of Americans about the important benefits of reverse mortgages and then refers interested consumers to qualified and experienced originators, who have access to VL’s wholesale reverse mortgage products, technology and education services. For more information, call 1-800-562-6755 or visit the company’s website at www.verticallend.com.

About KBC Financial Products

With offices in New York, London, Tokyo and Hong Kong, KBCFP is a wholly-owned subsidiary of KBC Bank NV. KBCFP’s product range includes equities, convertible and high yield bonds, equity derivatives, fund derivatives and structured credit products. KBC Bank NV is a wholly-owned subsidiary of KBC Group NV, a large multi-national banking and insurance group listed on Euronext Brussels. KBC Group NV, a multi-channel banking, insurance and asset management group, is one of the leading financial institutions in Europe, focusing on Belgium and Central Europe, and catering to retail and private banking customers. For more information, visit the KBC Financial Products website at www.kbcfp.com.

Written by charles dennis on August 3rd, 2007 with comments disabled.
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