Navient will sell its Government Services business to Gallant Capital Partners, affecting approximately 1,200 employees.
Quiver AI Summary
Navient has announced an agreement to sell its Government Services business to an affiliate of Gallant Capital Partners, LLC, with the transaction expected to close in the first quarter of 2025, pending certain conditions. This division includes several entities such as Navient Business Processing Group and Pioneer Credit Recovery, impacting approximately 1,200 employees. Navient has sought advice for this deal from Houlihan Lokey and WilmerHale. The press release emphasizes Navient's role in providing technology-enabled education finance and business processing solutions.
Potential Positives
- Navient's agreement to sell its Government Services business signifies a strategic divestiture, allowing the company to concentrate on its core activities in education finance and business processing solutions.
- The transaction is expected to close in the first quarter of 2025, providing a clear timeline for corporate restructuring and potential financial benefits.
- Approximately 1,200 employees will transition to Gallant Capital Partners, which may enhance employee morale by ensuring job continuity for affected staff.
Potential Negatives
- Navient is selling a significant portion of its business (Government Services), which may indicate strategic challenges or a downturn in that particular sector of operations.
- The transaction affects approximately 1,200 employees, which could lead to concerns about job security and the company's commitment to its workforce.
- The need to sell a business unit could raise questions among investors and stakeholders about Navient's overall financial health and future growth prospects.
FAQ
What business is Navient selling?
Navient is selling its Government Services business to Gallant Capital Partners, which includes several subsidiaries.
When is the transaction expected to close?
The transaction is expected to close in the first quarter of 2025, pending certain conditions.
How many employees will be impacted by this sale?
Approximately 1,200 employees will be included in the transaction with Gallant Capital Partners.
Who advised Navient on this transaction?
Navient was advised by Houlihan Lokey and WilmerHale during this transaction.
What does Navient specialize in?
Navient specializes in technology-enabled education finance and business processing solutions for education and government sectors.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
HERNDON, Va., Dec. 23, 2024 (GLOBE NEWSWIRE) -- Navient (Nasdaq: NAVI) announced today that it has reached an agreement to sell its Government Services business to an affiliate of Gallant Capital Partners, LLC, a Los Angeles-based investment firm.
Navient’s Government Services business includes Navient Business Processing Group, Duncan Solutions, Gila (D.B.A Municipal Services Bureau), Pioneer Credit Recovery and Navient BPO. Approximately 1,200 employees will be included in the transaction, which is expected to close in the first quarter of 2025, subject to certain conditions.
Additional information can be found in the 8-K filed by Navient today. Navient was advised on the transaction by Houlihan Lokey and WilmerHale.
About Navient
Navient (Nasdaq: NAVI) provides technology-enabled education finance and business processing solutions that simplify complex programs and help millions of people achieve success. Our customer-focused, data-driven services deliver exceptional results for clients in education and government. Learn more at
navient.com
.
Contacts:
Navient Media: Paul Hartwick, 302-283-4026,
paul.hartwick@navient.com
Navient Investors: Jen Earyes, 703-984-6801,
jen.earyes@navient.com
This article was originally published on Quiver News, read the full story.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
