Hercules Capital ( HTGC ), a specialty finance firm, said early Monday it acquired all outstanding equity of Gibraltar Business Capital, a working capital provider for small and mid-market businesses.
Financial terms of the deal weren't disclosed.
Hercules expects its investment in Gibraltar to be immediately accretive. The investment is expected to generate a cash yield of approximately 10% to 14%, the company said in a statement.
Gibraltar will be held as a portfolio company of Hercules and will continue to operate as an independent lender. Its employees will remain at its headquarters in Northbrook, Illinois.
Gibraltar has underwritten more than $325 million in credit facilities to more than 170 borrowers since the firm's inception in 2010.
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