Fifth Third announces the acquisition of Dividend Finance
A leading national point-of-sale lender in the high-growth sectors of solar and sustainable home solutions
Northampton, MA –News Direct– Fifth Third Bancorp
CINCINNATI, Jan. 19, 2022 /3BL Media/ — Fifth Third Bancorp today announced a definitive agreement to acquire Dividend Finance, a leading fintech point-of-sale (POS) lender providing financing solutions for renewable energy residential and home improvement with a focus on sustainability.
“The addition of Dividend Finance to our renewable energy portfolio reinforces the breadth of Fifth Third’s growing digital services capabilities and supports the Bank’s commitment to environmental leadership in financial services,” said Greg Carmichael. , Chairman and CEO of Fifth Third. “Together, we will help our clients with innovative, technology-driven financial solutions.”
Dividend Finance was founded in 2013 in San Francisco and is one of the nation’s leading solar lenders. With a vision to create a more efficient and sustainable world by enabling more investment in renewable energy, Dividend has pioneered a funding model to improve outcomes for all parties and help accelerate the growth of the solar energy in the United States. Dividend’s POS technology platforms allow entrepreneurs and homeowners to easily access financing for solar and home improvement projects. LL Funds is the majority shareholder of Dividend Finance.
“The Dividend team shares Fifth Third’s commitment to solutions that improve the lives of customers and has a strong track record of innovation, growth and excellent customer experience,” said Tim Spence, president of Fifth Third Bank. “We are excited to add Dividend’s premier lending experience, which responds to clients’ changing preferences and helps them accelerate their transition to a more sustainable future.”
“We are proud and excited to join the Fifth Third team. Their focus on technology-driven innovation and leadership on ESG issues is well known and will complement our culture. Dividend’s ability to leverage the extensive balance sheet, Fifth Third’s advantageous cost of funds and broader resources will provide a significant advantage to our clients and enable us to continue to accelerate growth,” said Eric White, CEO of Dividend Finance.
“We are proud to have supported and partnered with Dividend Finance during their growth and consider them a leader among their peers,” said Raj Mundy, Partner at LL Funds and Executive Chairman of Dividend Finance. “We are delighted to have the company become part of the Fifth Third family, and are confident that its growth and momentum will be further aided by this transition.”
Offering a wide range of lending products across multiple proprietary POS platforms, Dividend Finance has developed a unique solution that enables entrepreneurs to deliver the best financing experience to their clients. Dividend’s digital lending platform is designed to be customizable, providing entrepreneurs with the tools to win new business and borrowers with a streamlined process for financing home improvement projects. In addition to a strong network of entrepreneurs and a leading technology platform, Dividend has a national customer base focused on prime and prime borrowers.
Fifth Third focuses on three environmental sustainability strategies: reducing the Bank’s environmental footprint, managing climate-related risks, and supporting our clients and communities in transitioning to a more sustainable future. In 2020, Fifth Third set its first sustainable finance goal of $8 billion to be achieved by 2025. This includes lending and financing for solar, wind, geothermal, biomass and hydropower. Following this acquisition and Fifth Third’s current leadership position in providing revolving solutions to commercial customers, Fifth Third is actively evaluating a new focus on sustainable finance. In addition, Fifth Third’s environmental, social and governance (ESG) report describes all of the climate strategy.
The acquisition is subject to customary closing conditions, including regulatory approvals. Fifth Third currently expects the transaction to close in the second quarter of 2022. Macquarie Capital served as financial advisor and Dentons served as legal advisor to Dividend Finance.
About Dividend Financing
Dividend is a leading FinTech point-of-sale lender for home improvement and solar finance solutions. Founded in 2013, the company partners with solar and home improvement contractors across the United States to offer a range of financing products through its proprietary point-of-sale platforms. Learn more by visiting www.dividendfinance.com.
About LL Funds
Founded in 2009, LL Funds is an independent investment firm managing approximately $2.9 billion for institutional and individual investors. The company focuses on fintech companies, making both equity and debt investments. Since its inception, LL has generated over $3.4 billion in investment gains and distributed over $4 billion to investors.
About the fifth third
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent of Fifth Third Bank, National Association, a federally chartered institution. As of December 31, 2021, the company had $211 billion in assets and operated 1,117 full-service banking centers and 2,322 Fifth Third-branded ATMs in Ohio, Kentucky, Indiana, Michigan, Florida. Illinois, Florida, Tennessee, West Virginia, Georgia, the North. Carolina and South Carolina. In total, Fifth Third offers its customers access to approximately 54,000 free ATMs across the United States. Fifth Third operates four primary businesses: commercial banking, branch banking, consumer lending, and wealth and asset management. Fifth Third is one of the largest fund managers in the Midwest and, as of December 31, 2021, had $554 billion in assets under management, including $65 billion for individuals, corporations and nonprofits. through its trusts and registered companies. Investment advisory firms. Investor information and press releases can be viewed at www.53.com. The common stock of Fifth Third trades on the NASDAQ® Global Select Market under the symbol “FITB”.
Beth Oates (Media Relations)[email protected] | 313-230-9002
Chris Doll (Investor Relations)[email protected] | 513-534-2345
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