Jack Remondi, President & CEO of Navient, sitting with former Delaware Governor Jack Markell at a press conference in 2015.
Navient, the largest student loan company in the United States, announced it recently completed an $80 million acquisition of Duncan Solutions, a transportation revenue management company, on Tuesday, August 1st, according to a press release issued by Navient.
Duncan Solutions is a transportation revenue management company that serves both municipalities and toll authorities. For Navient, the $80 million acquisition signals yet another diversification of the company’s asset portfolio. While student loan servicing is the company’s cornerstone business, Navient is also a leading asset management company and business processing services company in the education, healthcare, and government sectors.
John Kane, Group President of Navient’s Business Processing Solutions division, stated the following in the press release: "Duncan brings many complementary services that round out our suite of offerings for public sector clients. The transaction continues to execute on Navient's business plan to grow and diversify our services beyond the education space.”
In recent years, the nation’s largest student loan servicer has made a concentrated effort to offer business processing solutions to federal, state, municipal, court, and toll clients. The purchase of Duncan Solutions is a result of that effort and bolsters Navient’s share in the municipal and toll market space.
Tim Wendler, CEO of Duncan Solutions had the following to say: "In Navient, we identified a true partner that is committed to delivering outstanding service for their clients and customers they serve.”
Duncan Solutions brings to the table a wide range of technology products that support and strengthen their clients’ parking and tolling businesses. Operations included in those businesses are customer service, billing, citation management, asset recovery, and transportation database services.
Duncan Solutions is based out of Milwaukee, Wisconsin and started all the way back in 1936. The transportation revenue management company employs roughly 250 people, serves clients in almost 30 states, and does approximately $55 million in yearly revenue. Duncan will continue to operate under their current leadership, and employees of the company will continue to work in their same locations.
For better or worse, the nation’s largest student loan servicer always seems to find a way to make headlines. In late June, Navient announced multiple executive appointments to the company. Among them were Tim Hynes as Executive Vice President of Consumer Lending, Steven Hauber as Chief Risk and Compliance Officer, and Jennifer Walker as Chief Audit Officer.
In January of 2017, Navient was handed a lawsuit from the Consumer Financial Protection Bureau (CFPB), who accused the company of “systematically and illegally” failing borrowers. The CFPB lawsuit stated that Navient committed deceptive acts like giving the wrong payment information to borrowers, processing their payments incorrectly, not responding to customer complaints, and falsely reporting that military veterans, who can seek debt forgiveness, had defaulted on their loans. Navient has since asked for those charges to be dismissed, claiming that the CFPB’s lawsuit incorrectly details noncompliant practices with new regulations as the basis of the lawsuit.
Finally, JPMorgan Chase & Co. sold their $6.9 billion portfolio of student loans to Navient back in April. Within that portfolio, $3.7 billion of the loans were federally guaranteed student loans, while $3.2 billion were private student loans.
Image Copyright © Jack Markell