March 24, 2010, 2:14pm PDT

Wells Fargo to buy GMAC assets

San Francisco Business Times - by Mark Calvey

Wells Fargo said Wednesday that it reached a definitive agreement to buy the North American factoring portfolio of GMAC’s commercial finance group.

Terms were not disclosed.

The GMAC portfolio consists of about 150 small and mid-sized clients primarily selling to retailers and represents approximately $4 billion in annual volume of factored receivables. In factoring, clients sell their accounts receivables at a discount to a lender like Wells Fargo to get their money right away.

The portfolio and the client-service application system used in serving these customers will become part of the trade capital division of Wells Fargo Capital Finance.

San Francisco-based Wells Fargo (NYSE: WFC), with $1.2 trillion in assets, operates 10,000 branches and 12,000 ATMs.

Mark Calvey covers banking and finance for the San Francisco Business Times.
Contact him at mcalvey@bizjournals.com or (415) 288-4950.

http://sanfrancisco.bizjournals.com/san ... ily55.html