As the industry was getting set to celebrate Thanksgiving last week, OneMain Holdings and Jefferies Financial Group reached a definitive agreement under which OneMain will acquire Foursight Capital from Jefferies for $115 million in cash.

OneMain chairman and CEO Doug Shulman explained why the non-prime company chose to make this move for Foursight, an auto finance company founded in 2012 that purchases and services retail installment contracts primarily made to near-prime consumers across 38 states.

Those contracts are sourced through a network of dealers.

“Foursight is an attractive tuck-in acquisition giving us a seasoned team, scalable technology, tested credit models, a franchise dealer network and a high-quality loan portfolio to support our disciplined expansion into the auto lending business,” Shulman said in a news release. “I look forward to welcoming Mark Miller and the Foursight team to OneMain and working together to continue to diversify and grow our suite of lending products for hardworking Americans.”

As part of the transaction, OneMain will acquire Foursight’s approximately $900 million portfolio. Foursight’s approximately 200 employees are expected to join OneMain, according to the news release.

The companies said the transaction is expected to close in the first quarter of 2024, subject to customary closing conditions and applicable regulatory approvals.

Nick Daraviras, co-president of Jefferies’ Leucadia Asset Management platform said, “We thank Mark Miller and the Foursight team for their partnership in building this powerful business. We wish them the best as they continue their development as part of OneMain.”

Jefferies LLC is serving as exclusive financial advisor and Morgan Lewis & Bockius LLP is serving as legal counsel to Jefferies.

Barclays Capital, Inc. is serving as exclusive financial advisor and Covington & Burling LLP is serving as legal counsel to OneMain.