Navient Corporation Enters Agreement to Sell Government Services Business to Gallant Capital Partners

Navient Corporation, a Delaware Corporation, disclosed in a Form 8-K filing with the Securities and Exchange Commission on December 19, 2024, that it has entered into a Sale and Purchase Agreement with Gallant GAPS Holdings, LLC, a subsidiary of Gallant Capital Partners, LLC. This agreement entails the sale of Navient’s government services business, which includes Navient Business Processing Group and its subsidiaries, to Gallant.

The transaction, which is subject to customary closing conditions, is expected to include approximately 1,200 company employees and is projected to close in the first quarter of 2025. As per the filing, Navient anticipates recognizing a loss related to this sale between $25 and $35 million in its fourth-quarter 2024 results. This estimated loss is contingent on various significant considerations, such as the consideration recognized as part of the sale and the book value of the government services business being divested.

According to the filing, the book value of the government services business was approximately $50 million, with a change in the deal structure resulting in around $20 million of deferred tax assets transferring to the buyer. This modification in the deal structure is expected to augment net cash proceeds to Navient.

The company recently issued a press release on December 23, 2024, to formally announce this transaction. Navient had previously concluded the sale of its equity interests in its healthcare services business for $369 million, resulting in a $219 million gain on the sale. These two transactions collectively represent the entirety of Navient’s Business Processing segment, as detailed in the company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.

For additional information, please refer to the documents filed with the Securities and Exchange Commission. The company was advised on the transaction by Houlihan Lokey and WilmerHale. Navient (Nasdaq: NAVI) is a provider of technology-enabled education finance and business processing solutions aimed at simplifying complex programs to aid individuals in achieving success.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Navient’s 8K filing here.

Navient Company Profile

Navient Corporation provides technology-enabled education finance and business processing solutions for education, health care, and government clients in the United States. It operates through three segments: Federal Education Loans, Consumer Lending, and Business Processing. The company owns Federal Family Education Loan Program (FFELP) loans that are insured or guaranteed by state or not-for-profit agencies; and performs servicing on its portfolios, as well as federal education loans held by other institutions.