General Motors, in a move to reestablish an in-house lending arm after selling off GMAC in 2006, said that it has agreed to purchase AmeriCredit for $3.5 billion in cash.
The deal, General Motor’s first since emerging from a short government-sponsored bankruptcy last year, came after months of deliberations by the auto maker about how to reestablish an internal financing arm. Another option it had discussed was re-acquiring Ally Financial from GMAC.
Under the terms of the deal, General Motors will pay $24.50 per share, a 24% premium compared to AmeriCredit’s Wednesday closing share price of $19.70. About General Motors 4,000 dealers already have relationships with AmeriCredit.
“This acquisition supports our efforts to design, build and sell the world’s best vehicles by expanding the financing options we can offer to consumers who want to buy G.M. vehicles,” Edward E. Whitacre Jr., G.M.’s chairman and chief executive, said in a statement. “Adding AmeriCredit to our team will improve our competitiveness in auto financing offerings, and I am very pleased to have them on board.”
GM plans to retain the existing management of AmeriCredit, including CEO Daniel Berce. The automaker said that the deal will not delay its efforts to regain an investment-grade credit ranking. The deal is expected to close during the fourth quarter.