F&I product and reinsurance provider Portfolio Holdings has agreed to acquire competitor National Automotive Experts/NWAN. Combined, the company will rank among the top 10 largest F&I product providers in the nation, executives said.
The acquisition continues an ongoing trend of F&I product company consolidation. Portfolio President and CEO Brent Griggs said the company has watched an uptick in mergers and acquisitions in the F&I product space over the past five years and noted some of the pressures from the competitive environment drove the need to acquire another company.
"We see consolidation happening in a much more rapid fashion than it has in the past," Griggs said. "It's just inevitable because there are 100-plus F&I administrators out there, many of them very small. And it's just a very inefficient way of delivering this product to dealer customers."