Wells Fargo, Commerce Funding Corporation Announce Definitive Acquisition Agreement
San Francisco — February 28, 2006
Wells Fargo & Company (NYSE:WFC) and Commerce Funding Corporation (CFC) announced today the signing of a definitive agreement for Wells Fargo Bank, N.A. to acquire Commerce Funding Corporation, a privately-held factoring company based in Vienna, Virginia, a suburb of Washington, D.C. Terms of the transaction, expected to close in the second quarter of 2006, were not disclosed. Established in 1987, Commerce Funding Corporation provides factoring solutions (accounts receivable purchasing) for companies that provide services to Federal, state and municipal governments and their agencies. Its clients include more than 200 small businesses registered to do business with government agencies. CFC has offices in Vienna, Virginia and Newport Beach, California. “CFC has long-standing relationships with industry leading professional service firms and is known as a leading provider of financing to both emerging and established government contractors,” said Martin McKinley, head of Wells Fargo Business Credit, a division of Wells Fargo Bank, N.A. “As the market for government contractors grows, CFC has the expertise to help government contractors with funding for working capital, recapitalization or acquisitions. We look forward to working with CFC’s seasoned team in this fast-expanding industry.” A pioneer in new contract finance methods, CFC purchases receivables from government contractors in need of funding for new and existing contracts, vendor obligations, debt obligations or expansion activities. CFC focuses on companies nationwide in professional services industries, including information technology, healthcare, operations management, logistics, distribution and security services. Last year CFC provided $500 million of capital to its diverse group of clients. “We’ve used our knowledge of public sector contracting to become a leading factor to companies doing business with government agencies,” said Jon Prager, president and CEO of Commerce Funding Corporation. “We’re excited about this new opportunity, which will enable us to provide our clients more services and to better accommodate their operational objectives.” Wells Fargo Wholesale Banking – with $88 billion in assets, and more than 600 locations coast-to-coast – includes middle market banking, corporate banking, commercial real estate, treasury management, asset-based lending, insurance brokerage, foreign exchange, trade services, specialized lending, equipment finance, capital markets activities, and asset management. Its Commercial Electronic Office (CEO) ® internet portal processes more than one million customer account log-ins a month. Wells Fargo is #1 in market share for middle market commercial customers in the western United States. Wholesale Banking accounts for about a quarter of the total earnings of Wells Fargo & Company.
Wells Fargo & Company is a diversified financial services company with $482 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,200 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, “Aaa,” from Moody’s Investors Service.