Financeit, a leading cloud-based point-of-sale financing platform, and Concentra, a leading wholesale finance and trust solutions provider for Canada's credit unions, today announced the acquisition of TD Bank Group's indirect home improvement financing assets, with a book value of approximately $339 million.
As part of the agreement, approximately 45,000 TD loans were purchased by Concentra 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.
"This exciting transaction strengthens our leading position in the home improvement financing space and our commitment to being a catalyst for the growth and success of this important community in Canada ," says Michael Garrity , Founder and CEO, Financeit. "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."
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. Merchants and their customers gravitate to the convenience of Financeit's free, innovative technology and consumer-friendly terms, and businesses focused in the areas of HVAC, pools and spas, windows and doors, roofing, decks and plumbing have been among the largest Financeit adopters.
With the transaction now completed, current TD merchant partners can begin submitting loans on Financeit's platform immediately and can take advantage of the company's unique approach. This includes mobile-enabled technology, customer self-serve application options, paperless document signing, extended credit and 180-day approval windows. Loan origination on the TD platform will end in October 2016 .
"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."
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.