Shares of online mortage provider E-Loan (Nasdaq: EELN) climbed more than 27 percent on Tuesday, gaining 6-3/8 to 29-3/4 after details of a deal with Bank of America were announced. Bank of America will merge its automobile loan site CarFinance.com into E-Loan in exchange for approximately a five percent stake in E-Loan.
The deal could have a major impact for E-Loan, because partnering with Bank of America could give it invaluable access to a massive customer base — as well as opportunities for expansion. Bank of America, which has $614 million in assets, is the largest bank in the United States. The company serves more than 30 million households and two million businesses.
Despite Tuesday’s gains, shares of E-Loan are still more than 40 points off their all-time high. Don’t be surprised if the stock continues to rebound.