FALLS CHURCH, Va., Sep 21, 2001 /PRNewswire/ -- Capital One
Financial (NYSE: COF) today announced it has agreed to acquire PeopleFirst Inc.,
the nation's largest online provider of direct motor vehicle loans. This
acquisition will make Capital One one of the nation's largest providers of
direct-to-consumer auto loans.
The purchase price is 3.7 million shares of Capital One common stock. Capital
One has agreed to file a registration statement with respect to the resale of
such shares promptly after the consummation of this acquisition. Capital One
confirmed that it is on track to meet its projected third quarter earnings as
well as its previously announced 30 percent growth in earnings per share.
"Leveraging PeopleFirst's successful online business model with Capital One's
proven ability to customize products will ultimately benefit auto buyers
nationwide," said Richard D. Fairbank, Capital One's Chairman and Chief
Executive Officer. PeopleFirst is the pioneer of an innovative financing option
that allows consumers to conveniently secure financing before purchasing a motor
Capital One entered the auto finance business in 1998 when it acquired Summit
Acceptance Corporation and is now growing the business as Capital One Auto
Finance. "With the acquisition of PeopleFirst, Capital One extends its auto
finance strategy to superprime consumers and those directly seeking flexible
financing online," Fairbank said.
PeopleFirst Inc., a privately held company with more than 270 employees based in
San Diego, CA, will become a wholly owned subsidiary of Capital One. After the
acquisition, the current senior team at PeopleFirst will continue to manage its
operations. PeopleFirst has provided nearly $2 billion worth of financing to
help customers purchase motor vehicles since the company started originating
loans in 1997.
"We are excited to become part of the Capital One family," said Gary Miller, CEO
and co-founder of PeopleFirst. "Not only does Capital One bring significant
resources and opportunities for PeopleFirst to leverage, but they also share our
strong commitment to customers."
Credit Suisse First Boston advised Capital One on this acquisition; Merrill
Lynch advised PeopleFirst. The parties intend to close the transaction as soon
as practicable upon satisfaction of closing conditions.
About Capital One
Headquartered in Falls Church, Virginia, Capital One Financial Corporation
(http://www.capitalone.com ) is a holding company whose principal subsidiaries,
Capital One Bank and Capital One, F.S.B., offer consumer lending products.
Capital One's subsidiaries collectively had 38.1 million customers and $35.3
billion in managed loans outstanding as of June 30, 2001. Capital One, a Fortune
500 company, is one of the largest providers of MasterCard and Visa credit cards
in the world. Capital One trades on the New York Stock Exchange under the symbol
"COF" and is included in the S&P 500 index.
About PeopleFirst Inc.
Founded in 1995, PeopleFirst is the nation's largest online motor vehicle
lender, originating and servicing consumer auto and motorcycle loans, primarily
via the Internet. PeopleFirst is the pioneer of an innovative financing option
that gives consumers the flexibility to finance their purchase of a new or used
car or motorcycle at virtually any dealership in the country up to their
pre-approved loan amount without having to renegotiate the terms. The company
also provides financing for lease buyouts, refinances of existing loans, and the
purchase of vehicles from private individuals. The company presently offers auto
and motorcycle loans in 48 states plus the District of Columbia. To obtain more
information about PeopleFirst, visit the company's Web site at
Capital One cautions that its current expectations for its earnings are
forward-looking statements and actual results could differ materially due to a
number of factors, including competition in the credit card, installment loan,
and auto finance industries and general economic conditions affecting consumer
income and spending, which may affect consumer borrowing, bankruptcies,
delinquencies, and charge-offs. A discussion of these and other factors can be
found in Capital One's annual and other reports filed with the Securities and
Exchange Commission, including, but not limited to, Capital One's report on Form
10-K for the year ended December 31, 2001.
MAKE YOUR OPINION COUNT - Click Here
SOURCE Capital One Financial
CONTACT: Sandi Abadinsky, Corporate Communications, +1-703-205-1063 or
email@example.com, or Paul Paquin, Investor Relations,
+1-703-205-1039 or firstname.lastname@example.org, both of Capital One Financial