NY Times: Sallie Mae in Talks to Go Private; Potential $20 billion Deal

The New York Times is reporting today that Sallie Mae is in potential talks to sell itself to private equity and go private.  The reported deal would be worth around $20 billion.

The Times, citing “people briefed on the discussions,” named private equity titan Blackstone Group as one of the potential buyers.  The article did not mention other bidders, but did say one was a financial services firm.

The news about a potential deal and a private Sallie Mae come one day after it was announced the that the student loan firm would be settling charges in New York of general squirreliness concerning its’ student loan practices.

A deal to take Sallie Mae private could have repercussions in the ARM industry.  Sallie Mae has been acquiring collection agencies for a while now and has found itself among the top five ARM companies in the country, according to Mike Ginsberg, CEO of ARM industry advisor Kaulkin Ginsberg Company.

“If this deal gets done, it means that 3 of the top five players in the ARM industry (including West and NCO) have gone private recently.  It will definitely impact the industry,” said Ginsberg.