Private investment firm Cornell Capital has purchased Spectrum Automotive, a marketer and administrator of finance and insurance (F&I) products for the US automobile market.
The deal value was not revealed.
Spectrum, set up in 1999, offers a range of proprietary and third-party extended warranty and ancillary products. Currently, the firm has a client base of over 1,400.
Cornell Capital senior partner Henry Cornell said: “Spectrum’s strong relationships and differentiated F&I product portfolio has established the company as a clear market leader.
“With impressive growth, a diversified and resilient business model and an exceptionally talented management team, Spectrum embodies the type of business we strive to partner with at Cornell Capital.
“As the F&I sector continues to grow, we look forward to working with Jim and the team to build on Spectrum’s momentum and capitalise on a range of compelling growth opportunities.”
Spectrum CEO Jim Polley added: “Cornell Capital’s operational experience and intricate knowledge of our business and the opportunities present in the market make them the ideal partner for Spectrum’s next stage of growth as we continue to expand what we can deliver to our clients, employees, and partners.”
Cornell Capital said that Spectrum’s purchase forms part of its plan to expand businesses organically and through takeovers.
Last year, Cornell Capital invested in Talcott Resolution, the life, and annuity business that was previously a part of The Hartford.