Finastra today announced that it has entered a definitive agreement to sell its Canadian-based Collateral Management Corporation (CMS) business to Teranet.
The transaction is expected to close in July 2018, subject to required regulatory approvals and customary closing conditions.
CMS is the leading provider of lien registration services, recovery services and insolvency management solutions to Canadian lenders. Teranet is Canada’s leader in the delivery of statutory registry services. The transaction will include all of CMS’ registration and recovery solutions.
CMS will join Teranet as a new complementary line of business. Jointly, they will deliver enhanced, integrated solutions to a broad set of financial services customers, leveraging investments in technology, rich insightful data, and market leading electronic registry and workflow platforms.
“CMS is the largest national provider of registration and recovery solutions to Canadian lenders, and we firmly believe that it will thrive under new ownership. This divestiture is in keeping with our long-term strategy, and the sale will provide the right environment for our customers and employees to succeed over the long-term and innovate together in the Registry and Recovery businesses,” said Simon Paris, Chief Executive Officer, Finastra.
“We are pleased to bring together D+H Collateral Management Corporation’s and Teranet’s expertise in registries, technology solutions and operations,” says Teranet CEO, Elgin Farewell. “This transaction creates synergies that will significantly extend our financial services business across Canada.”
Finastra advisors for this transaction were BMO Capital Markets and Stikeman Elliott LLP. The financial details of the deal were not disclosed.