OnDeck (NYSE: ONDK), the leader in online lending to small business, today announced it has completed the transaction combining its Canadian operations with Evolocity Financial Group (Evolocity), a Montréal-based online small business lender. The combined companies are majority owned by OnDeck.
The successful transaction combines the local operations, technology and Canadian underwriting expertise of Evolocity with the marketing, business development and international online lending experience of OnDeck to offer small businesses in all provinces and territories of Canada a broad array of innovative financing options and a superior customer experience. Once the integration of the combined companies is complete, the business will operate under the existing OnDeck Canada name.
"The closing of this transaction signals a new era of online lending innovation on behalf of Canada's small businesses," said Noah Breslow, chairman and chief executive officer of OnDeck. "As one of Canada's leading online lenders to the crucial small business sector, we are well-positioned to provide financing options that will benefit Canadian small business owners from coast to coast."
The completed transaction establishes one of Canada's largest online lenders to small business. OnDeck Canada and Evolocity have each contributed their business operations and assets, and OnDeck has made an additional cash investment such that OnDeck owns a majority interest in the new combined entity. Other terms of the transaction were not disclosed.
Neil Wechsler will serve as chief executive officer of OnDeck Canada, and the management team will include Evolocity co-founders David Souaid as chief revenue officer and Harley Greenspoon as chief operating officer. The new entity has a Board of Directors chaired by Noah Breslow, OnDeck chief executive officer and includes OnDeck chief financial officer Ken Brause, OnDeck International president Rob Young, and the three Evolocity executives named above. OnDeck Canada will be consolidated and reported in OnDeck's financial statements with Evolocity's existing shareholder stake reported as a non-controlling interest.