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Navient (NAVI) Acquires Duncan Solutions for $80 Million

Navient Corporation NAVI recently announced its acquisition of Milwaukee, WI-based Duncan Solutions for $80 million. Navient expanded its presence in the municipal and toll services market through this acquisition.

Duncan Solutions offers a wide variety of technology-enabled products and services to facilitate a seamless parking and tolling experience for its clients. Some of the services they provide include citation processing, debt collection and integrated on-street parking management.

The acquired company will bring many services that would complement Navient’s offerings for public sector clients. So long, Navient has been concentrating on educational loans. Adding Duncan Solutions to its portfolio will help in executing business plans to expand services outside the educational industry.

Duncan Solution’s employees will continue to work from its headquarters in Milwaukee and other locations. They will continue to be led by its current management team.

With clients in 30 states across the country, Duncan Solutions will provide Navient with geographical diversification as well. Currently, Duncan Solutions has approximately $55 million in annual revenues. This acquisition will likely enhance Navient’s top-line in the upcoming quarters.

Navient’s diversification strategy included its acquisition of Xtend Healthcare in Oct 2015. With this, the company ventured into the healthcare sector and helped lower its concentration risk.

Shares of Navient have lost 3.9% over the last three months versus the industry’s gain of 4.6%.

Currently, Navient carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks from the same space are FS Bancorp, Inc. FSBW and Green Bancorp, Inc. GNBC sporting a Zacks Rank #1 (Strong Buy), and First Cash, Inc. FCFS with a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FS Bancorp, Inc. has remained stable at $3.59 per share for the current year over the last 30 days. Its share price has seen a 64.5% rise over the last one year.

Green Bancorp, Inc witnessed upward earnings estimate revision of 18.1% for the current year over the past 30 days. Also, its share price has gone up 144.6%, over the last one year.

First Cash’s Zacks Consensus Estimate has been revised 2.7% upward for the current year over the last 30 days. Also, its share price has jumped 14.6% over the last one year.

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