Small and medium-sized business (SMB) financing company Trade Finance Solution (TFS) is expanding its offering through a new acquisition.
The company announced Friday (Jan. 19) in a press release that it had reached an agreement to purchase Paragon Financial Group, an invoice financing firm. TFS aims to use the takeover to continue expansion across the U.S. and link Paragon's existing clients to its own offerings. Further, TFS plans to continue to pursue merger and acquisition (M&A) deals as part of its growth strategy.
The press release by the firms said Paragon managing partner Jon Anselma and president Chris Curtin will continue to manage daily operations and lead the implementation of growth strategy as a result of the merger.
“We were seeking a partner that would allow our firm to service a larger client base and grow our portfolio,” Anselma explained. “We decided to partner with TFS as we believe their focus on specialty finance complements the foundation our company was built on: factoring. This acquisition will ensure our continued growth at Paragon and, in turn, we will be able to bring our expertise and know-how to the TFS offering. Paragon's strong presence in the U.S. marketplace will only grow with this transaction.”
TFS expressed similar positivity about the move.
“We are pleased to have Paragon join alongside our brand and team; their lending offering and respected heritage make them a very strong market player with a great client base and an impressive senior management team who will continue to run Paragon moving forward,” TFS president Steve McDonald added in another statement.
McDonald also noted that the merger would combine with the previous takeover of Gerber Finance early last year, which demonstrates the company's “continued dedication to growing our business organically and through key strategic acquisitions.”
Financial terms of the takeover were not disclosed.