BOSTON December 18, 2000 PrimeStreet Corporation, a credit solution enabler for small businesses, announced that it will acquire Palo Alto-based eLease Financial Services. eLease develops web-based transaction processing systems for leasing companies, banks, equipment manufacturers and dealers that offer leasing to their customers. The acquisition is aimed at expanding PrimeStreet's range of credit solutions.
Combining PrimeStreet and eLease's technology and market strengths creates a solid cornerstone for our vision of placing real-time lending and leasing automation solutions at the immediate point of need, said Kevin Talbot, chairman and CEO of PrimeStreet. eLease has developed a leading-edge automation platform that will reduce transaction costs and increase revenues for clients.
Under the terms of the acquisition, eLease will remain based in Palo Alto, California, and will be combined with PrimeStreet's west coast sales office. The new entity will use the PrimeStreet corporate name. In addition, eLease's lead investor, idealab! will make a separate financial investment in PrimeStreet.
By joining forces with PrimeStreet we can collectively deliver a more powerful and fully-integrated solution to the market, said Ivan Wolkind, CEO of eLease. The combined strength of our two companies will allow us to address comprehensively the needs of the lessor and vendor finance industry, which is estimated by the U.S. Commerce Development to grow to $240 billion by the end of the year.