Axos Bank acquires Verdant Commercial Capital for $43.5 million

Axos Bank, the banking subsidiary of Axos Financial Inc. (NYSE: AX), announced the acquisition of Verdant Commercial Capital LLC, an equipment leasing company with approximately $1.1 billion in loans and leases on its balance sheet as of August 31, 2025.

The San Diego-based bank will pay a 10% premium on Verdant's book value at closing, with a projected initial purchase price of $43.5 million in cash. This includes a $4 million premium to book value. The seller may earn additional performance-based cash payments over four years if Verdant generates a return on equity above 15%, with total earn-out payments capped at $50 million.

Verdant originates equipment leases ranging from $50,000 to $5 million nationwide across six specialized industry verticals. The company offers equipment finance leases, conditional sale leases, fair market value leases, and terminal rental adjustment clause leases.

"This acquisition provides us with more scale and enhances our existing equipment leasing business with good risk-adjusted returns," said Greg Garrabrants, President and CEO of Axos Financial Inc. He noted the company expects the transaction to be accretive to earnings per share by approximately 2%-3% in fiscal 2026 and 5%-6% in fiscal 2027.

The companies signed a member interest purchase agreement on September 19, 2025. Keefe, Bruyette, and Woods, a Stifel Company (NYSE: SF), served as financial advisor to Verdant. Axos expects to close the transaction on September 30, 2025.

Axos Financial Inc. reported approximately $24.8 billion in consolidated assets as of June 30, 2025. The information is based on a company press release statement.

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