Cleveland, Ohio-based KeyBank NA will acquire Laurel Road Bank's digital lending business in a move to enhance its digital capabilities.
Laurel Road Bank, which specializes in student loan refinancing, has originated over $4 billion in loans since launching in 2013.
The financial terms of the deal have not been disclosed.
After the acquisition, approximately 140 Laurel Road Bank employees will join Key. The employee teams will continue to be based in New York, Connecticut and California.
Laurel Road Bank's branches in Connecticut are not part of the deal.
Debevoise & Plimpton LLP advised for Key's side. RBC Capital Markets and Fried Frank advised Laurel Road Bank.