Macquarie buys US equipment lessor

Macquarie Group (the new name for Macquarie Bank) is expanding its presence in the equipment leasing market with the acquisition of CIT Systems Leasing.

Macquarie announced yesterday that it had entered into an agreement to buy the Michigan-based company, which will be merged with its existing leasing business, Macquarie Technology Finance.

The acquisition of CIT, which Macquarie described as one of the largest independent lessors in North America, will give Macquarie coverage of the European, Asia-Pacific and North American markets.

CIT, which sells finance for technology and capital equipment, has $US700 million of assets. It has 180 staff.

The global head of Macquarie Technology Finance, Andrew Gee, said in a statement that part of the attraction of the deal was that Macquarie would  be able to offer multinational business customers "truly international" financial solutions.

Macquarie estimates that $US125 billion of new equipment is financed annually in the US market. Gee said the merger would allow the group to target "significantly more growth".

Macquarie said it expected the transaction to be completed by March next year.