Today Toronto based Financeit, a leading cloud-based point-of-sale financing platform, and Concentra, a Saskatchewan based trust solutions provider for Canada’s credit unions, announced the acquisition of TD Bank Group’s indirect home improvement financing assets, for approximately $339 million.
As part of the agreement, Concentra has purchased approximately 45,000 TD loans and over 800 merchant dealers were assigned to Financeit. After a transition period from TD, Financeit will take over the servicing of these loans and all future point-of-sale loans will originate on the Financeit technology platform. The deal represents a significant strategic investment for Financeit and Concentra and marks Financeit’s first major acquisition since entering the point-of-sale financing market in 2011.
“Since launching five years ago, Financeit has been singularly focused on being the best, most innovative merchant financing partner and this acquisition signals that our plans have moved into the fast lane,” says Michael Garrity, Founder and CEO, Financeit.
Financeit has a nationwide footprint in the home improvement industry and has increased its lending activity in this market by almost 200% since last year. Since launching in 2011, Financeit has raised money from a variety of investors, including a division of Goldman Sachs and FIS Global and has processed more than $1.5 billion in loans in Canada and the United States.
Now that the transaction is complete, loan origination on the TD platform will end in October 2016. Current TD merchant partners can now begin submitting loans on Financeit’s platform, including mobile-enabled technology, customer self-serve application options, paperless document signing, extended credit and 180-day approval windows.”
TD and Financeit are committed to ensuring a smooth transition for employees, partners and customers. Toronto-based White Point Capital acted as an agent for the transaction for both Financeit and Concentra.
“We see this collaboration with Financeit as a way to accelerate Concentra’s business strategy to seek growth within the consumer financing market and diversify our wholesale business,” explains Dallas Marce, Executive Vice-President, Wholesale Banking, Concentra. “Our next step is to leverage this acquisition to develop new investment offerings for credit unions that align with their business needs.”