AUSTIN, Texas and DENVER -

In what the companies are calling an all-stock merger of equals, RateGenius Loan Services and AUTOPAY Direct announced on Tuesday that they have entered into an agreement to combine.

According to a news release, the transaction, which is expected to close within the next 60 days, has been unanimously approved by the board of directors of both companies.

As a result of the merger, RateGenius and AUTOPAY highlighted the combined company will provide even more choices for consumers, while channel partners and finance companies will benefit from aggregated supply and demand via APIs and embeddable co-branded and white-labeled user experiences.

Both companies said they have enjoyed years of high growth as consumers increasingly embrace digital financing and as auto finance activity continues to shift outside the dealership.

“The almost $1.4 trillion auto debt market is now the third-largest consumer loan category leaving consumers in need of a better option,” RateGenius chief executive officer Christopher Speltz said in the news release. “Over the last several years, more savvy consumers are taking advantage of online, digital-first lending processes, low-interest rates, strong vehicle collateral values and lenders that have excess deposits and thus a strong desire to grow their auto refinance asset category.

“This merger will strongly drive these trends and expand and enhance consumer loan savings,” Speltz continued.

The companies currently employ more than 500 team members in their Austin, Texas, and Denver hubs. Working with more than 180 finance companies in all 50 states, the companies said they will facilitate more than $2 billion in automobile financing this year.  

“We will stand and lead at the intersection of several important banking trends including growing consumer awareness of vehicle refinancing, the markets’ increasing acceptance of digital lending and partnerships with fintech companies,” AUTOPAY co-CEO Seth Meyer said.

“The auto finance paradigm is shifting dramatically. It is our intent to provide the highest quality operations that consumers and lenders can rely on when seeking to execute successful auto financings outside of the dealership,” AUTOPAY co-CEO Jeff Hutcheson added.

Portico Capital served as the exclusive financial advisor to AUTOPAY, which is a portfolio company of FM Capital.

RateGenius is a portfolio company of Tritium Partners.