NEW YORK-( Business Wire )-
Traditional communications and information services and technology companies continue to experience strong growth increases in underlying demand, as M&A activity and rapid organic growth continue to drive the need for capital in the industry, according to Tom Westdyk, Managing Director of CIT Communications, Media and Entertainment at CIT Group Inc. (NYSE: CIT) cit.com, a leading provider of financing to small businesses and middle market companies. Westdyk discusses current trends and financing opportunities in the communications and information services and technology sectors in Communications & Technology Financing Outlook (cit.com/westdyk), the latest in a series of in-depth executive Q&As featured in CIT’s Executive Spotlight series (cit.com/executivespotlight).
Tom Westdyk, Managing Director of CIT Communications, Media and Entertainment at CIT Group Inc. (NYSE: CIT) cit.com, a leading provider of financing to small businesses and middle market companies. (Photo: Business Wire)
Positive Growth Trends
A wide spectrum of these sectors are experiencing positive industry trends, according to Westdyk. “In communications, the catalyst of this growth is sourced from both consumers and corporations who are accepting and integrating more and more new devices into their personal lives and business operations. In the information services and technology sectors, we see traditional communications and media industries continue to migrate toward digital distribution channels and technology enabled services.”
Steady Growth Through Economic Turbulence
Continued fluctuations in the economy have not had an adverse effect on these industries. Westdyk adds: “Many of the applications and services provided by the communications and information services sectors drive efficiency. As such, companies are willing to purchase these technologies and services because they introduce sustained operational improvements that increase profitability long-term.”
Lenders Keen on Sector
Due in part to high cash flow margins, many lenders find these sectors attractive, Westdyk comments. “These businesses are well suited for leveraged loans, as their revenue models, which are highly recurring in nature, are typically supported by licenses, subscriptions, contracts, high-quality/diverse customer bases and high customer retention rates. Additionally, cash flow margins are high due to scalability of these businesses that creates significant operating leverage.”
Individuals can go to Communications & Technology Financing Outlook (cit.com/westdyk)to view the entire executive spotlight. Other recent Q&As featured in CIT’s Executive Spotlight series (cit.com/executivespotlight) include the 2012 U.S. Energy Sector Outlook and the Commercial Aviation Industry Outlook.
Founded in 1908, CIT (NYSE: CIT) is a bank holding company with more than $34 billion in finance and leasing assets. A member of the Fortune 500, it provides financing and leasing capital to its more than one million small business and middle market clients and their customers across more than 30 industries. CIT maintains leadership positions in small business and middle market lending, factoring, retail finance, aerospace, equipment and rail leasing, and global vendor finance. CIT also operates CIT Bank, BankOnCIT.com, its primary bank subsidiary and an FDIC-insured online bank which offers a suite of savings options designed to help customers achieve a range of financial goals. cit.com
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CIT MEDIA RELATIONS:C. Curtis Ritter, 973-740-5390Director of Corporate CommunicationsCurt.Ritter@cit.comorMatt Klein, 973-597-2020Vice President, Media RelationsMatt.Klein@cit.comorCIT INVESTOR RELATIONS:Ken Brause, 212-771-9650Executive Vice PresidentKen.Brause@cit.com