Manatt Wins M&A Forum Deal of the Year in Corporate Social Responsibility Award
June 19, 2008 – Manatt, Phelps & Phillips, LLP, the national law and consulting firm, announced today that the firm was honored with a Deal of the Year in Corporate Social Responsibility award for its role in Kinecta Federal Credit Union’s acquisition of Navicert Financial, Inc. dba Nix Check Cashing. Manatt was instrumental in the deal, which expanded financial services to inner city customers often ignored by other financial institutions.
The deal’s genisis was a bus tour of inner city Los Angeles for business and community leaders. On the tour, Manatt partner and former chief executive Paul Irving sat next to Thomas Nix, Jr., President and founder of Navicert Financial Inc. dba Nix Check Cashing – both men sharing a passion for bringing businesses together to find solutions to societal challenges.
During the serendipitous meeting, Mr. Nix told Mr. Irving of his desire to sell the business in a transaction that would not only maximize shareholder value and protect employees, but also expand financial services to underserved and lower income communities that were the focus of the Nix Check Cashing business. Mr. Irving had an idea for a potential buyer with a deep commitment to socially responsible banking - Kinecta Federal Credit Union, a member-owned credit union, and a progressive, socially responsible fit.
In August 2007, Kinecta and Navicert entered into a definitive agreement for a transaction in which Kinecta acquired 55 Nix Check Cashing retail outlets.
Following completion of the deal, Nix branches were converted to full-service Kinecta Federal Credit Union branches, offering the full spectrum of over-the-counter financial products and services, including consumer loans, share-deposit services, auto and homeowners insurance, and financial education programs.
Widely recognized by government and community leaders for its positive impact on challenged areas, the deal revolutionized the way financial services are delivered to traditionally underserved at-risk communities -- namely the creation of a new credit union available to walk-ins.
In addition to Mr. Irving, Manatt partner David Grinberg, and associates Jason Taketa and Jennifer Haft, were part of the deal team.
The honor was one of seven inaugural Caesar Awards presented by the M&A Forum at a ceremony on June 17 in Southampton, NY. The Caesar Awards honor deals and dealmakers for transactions that preserve jobs, create economic development, spur “green” technologies, or create community support programs.
About Manatt, Phelps & Phillips, LLP
Manatt, Phelps & Phillips, LLP, provides legal and consulting services to a global client base from offices in Los Angeles, Orange County, Palo Alto, San Francisco, and Sacramento, California; New York City and Albany, New York; and Washington, D.C. Manatt includes Manatt Health Solutions, a healthcare policy and strategic business advisory group, and ManattJones Global Strategies, LLC, a wholly owned subsidiary that develops and implements strategies to expand client businesses and facilitate their effective competition in global markets. For more information, visit www.manatt.com, www.manatthealthsolutions.com, and www.manattjones.com.