A merger Financial Services Group first revealed in October now is closed, according to an announcement on Tuesday.

First Investors said the acquisition of the subprime auto finance company by funds affiliated with Gallatin Point Capital and minority investor Jacobs Asset Management closed on Thursday, following receipt of all required consents and regulatory approvals.

Terms of the merger were not disclosed, but the announcement indicated a portion of the proceeds from the transaction will serve to retire certain indebtedness of the company and provide additional working capital to grow and expand the company’s financing businesses as well as to accelerate its portfolio acquisition capabilities and third-party servicing segment. 

First Investors also noted that the executive management team — with an average tenure of 17 years with the company — is expected to remain in place.

“We are excited to close the merger transaction which will allow the management team to resume its strategy of prudently growing organic originations in business segments that provide us with attractive risk-adjusted returns while strategically looking for opportunities to expand our lending partnerships, pursue portfolio acquisition opportunities, and establish third-party servicing relationships,” said First Investors president and chief executive officer Tommy Moore Jr., who was honored during 2017 Used Car Week as the Subprime Auto Finance Executive of the Year.

Gallatin Point co-founder and managing partner Matt Botein shared his perspectives about the merger closing.

“First Investors has an outstanding financial and operational track record and a distinguished reputation for how it conducts its business,” Botein said. “We are very excited to partner with its strong management team to accelerate growth opportunities and enhance First Investors’ capacity to deliver value to its customers.”

And Jacobs Asset Management founder and managing partner Sy Jacobs added, “It is great to be working with Gallatin Point and the same management team I so admired and enjoyed working with during my 10 years on the board while the company was publicly-traded.”

Credit Suisse Securities (USA) served as exclusive financial advisor and Willkie Farr & Gallagher acted as legal advisor to First Investors. 

Wells Fargo Securities served as exclusive financial advisor and Goodwin Procter acted as legal advisor to Gallatin Point and the investor group.