Wells Fargo Acquires Servus Financial Corporation
SIOUX FALLS — July 7, 2000
Wells Fargo Education Financial Services (EFS), a part of Wells Fargo & Company, said it has agreed to acquire Servus Financial Corporation (Servus).
The acquisition includes significant assets of Servus' affiliated company, EduCap Inc. (EduCap). Servus and EduCap together are the nation's largest provider of private, credit-based education loans. The acquisition is scheduled for completion by the end of the first quarter of 2000. Servus will continue to operate under its own name in its current facility. Terms of the acquisition are not being disclosed.
"Servus will be a tremendous strategic fit for our business," said Jon Veenis, president of Wells Fargo EFS. "With its focus on direct-to-consumer student loans, Servus will allow us to offer a wider breadth and range of products to our customers."
Servus is based in Herndon, Virginia and was founded in 1993 by the management team of EduCap.
Since 1986, Servus and EduCap have provided almost $2.5 billion in loans to 300,000 families at more than 3,000 schools and companies. Servus and EduCap have more than $1.8 billion in outstanding loans and serve more than 250,000 customers. Servus offers proprietary and private label loan programs such as ConSern, an employee benefit sold through human resource offices which offers education financing to employees and their families, and PLATO, a private credit-based education loan for students. Servus is also the provider of the Microsoft IT Skills Loan program, and the nation's largest computer loan provider offering direct channel programs through Apple, Dell, IBM and Sony.
"After working with Wells Fargo EFS and the Norwest Student Loan Center for ten years, we are confident that this company has both the expertise and the commitment to continue to serve students and families," said Doug Dolton, President of Servus.
Wells Fargo Education Financial Services, based in Sioux Falls, S.D., has over $6.5 billion in assets and more than 500 employees. It is part of Norwest Bank South Dakota, N.A., a subsidiary of Wells Fargo & Company, a $218 billion diversified financial services company providing banking, insurance, investments, mortgage and consumer finance through almost 6,000 stores, the Internet and other distribution channels across North America, including all 50 states, and elsewhere internationally.