Springleaf buying OneMain Financial from a Citigroup subsidiary for $4.25 billion

MarketsAssociated Press

Personal finance company Springleaf Holdings is buying Citigroup's OneMain Financial for $4.25 billion.

OneMain of Baltimore provides personal loans and has more than 1,100 neighborhood branches across 43 states. The Citigroup subsidiary, originally founded as Commercial Credit, has about 5,600 employees and is based in Evansville, Indiana.

Continue Reading Below

Springleaf Holdings Inc. will consolidate approximately 200 branches beginning in the middle of next year. The combined company is expected to have 1,967 branches across 43 states. The Springleaf brand will begin to be phased out in 2016 and use the name OneMain.

The boards at Springleaf and Citigroup have approved the deal, which is expected to close in the third quarter.

Shares of Citigroup Inc. rose slightly in premarket trading Tuesday.