DETROIT — This morning, General Motors announced it is acquiring AmeriCredit to meet consumer demand for leasing and non-prime financing. GM plans to acquire AmeriCredit in an all-cash transaction for about $3.5 billion.

While GM will become the non-prime lender's parent company, the plan is for AmeriCredit to continue to serve the dealers it already works with, in addition to serving like a captive for GM.

"This acquisition supports our efforts to design, build and sell the world's best vehicles by expanding the financing options we can offer to consumers who want to buy GM vehicles," explained Ed Whitacre, GM chairman and chief executive officer.

"Adding AmeriCredit to our team will improve our competitiveness in auto financing offerings, and I am very pleased to have them on board," he added.

Rumors had been circulating for a while that GM might look into purchasing a lender to help drive sales penetration.

Basically, the acquisition will establish the core of a new GM captive financing arm that will enable the automaker to provide customers with a more complete range of financing options, while creating significant growth opportunities for both GM and AmeriCredit.

Since GM and AmeriCredit launched a successful non-prime program in September 2009, GM's non-prime penetration has increased significantly, according to automaker officials.

Upon completion of the transaction, AmeriCredit will re-enter the leasing business which will provide expanded leasing availability for all GM customers.

Direct ownership of AmeriCredit's expertise will provide consistent availability of non-prime financing for GM customers throughout all economic cycles, officials highlighted. While AmeriCredit already has relationships with about 4,000 GM dealers, this transaction will enhance dealer receptivity and improve sales penetration rates through coordinated GM branding and targeted customer marketing incentives.

"With AmeriCredit providing us niche capabilities in leasing and non-prime financing, along with the continued strong support of Ally Financial and others for prime retail and dealer financing, we've set up a very competitive solution for our financing needs, which will be resilient through credit and business cycles," said Chris Liddell, GM vice chairman and chief financial officer.

Meanwhile, Dan Berce, AmeriCredit president and CEO, said, "We're excited about joining the GM team. While we will be expanding our product set to more fully support GM, we'll continue to offer our loan products to more than 11,000 dealers across the country we serve today. Long term, this transaction will deliver benefits to our dealers, customers and employees."

The AmeriCredit management team will remain intact, which is designed to help minimize integration risk and maximize opportunities.

With assets of about $10 billion, the acquisition of AmeriCredit poses minimal impact to GM's balance sheet, and does not change the automaker's objective of achieving strong investment grade status, according to officials.

Under GM ownership, AmeriCredit will maintain its own direct access to the capital markets for its financing requirements.

Under the definitive agreement, which has been approved by both sets of boards of directors, at closing, AmeriCredit shareholders will receive $24.50 in cash for each share of stock held as of the transaction closing date.

The transaction is expected to close by the end of the fourth quarter of 2010, pending certain closing conditions, including the approval of AmeriCredit shareholders.