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Communications & Technology Financing Outlook Featured on CIT’s Executive Spotlight Series

Posted by Sangaré Mohamed in Technology | 0 comments

NEW YORK–(BUSINESS WIRE)–

Traditional communications and information services and technology
companies continue to experience strong growth increases in underlying
demand, as MA 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 – News) 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 QAs featured in CIT’s
Executive Spotlight series (cit.com/executivespotlight).

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.”

EDITOR’S NOTE:

Individuals can go to Communications
Technology Financing Outlook (cit.com/westdyk)to
view the entire executive spotlight. Other recent QAs featured in CIT’s
Executive Spotlight series (cit.com/executivespotlight)
include the 2012
U.S. Energy Sector Outlook and the Commercial
Aviation Industry Outlook.

Individuals interested in receiving corporate news releases can register
at cit.com/newsalerts
or subscribe to the RSS feed at cit.com/rssfeed.

About CIT

Founded in 1908, CIT (NYSE: CIT – News) 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