Nesto, Canada’s leading digital mortgage lender, today announced its acquisition of CMLS Group, the third-largest mortgage finance company in Canada.
The acquisition aims to establish the largest technology-enabled lender in Canada, enhancing both residential and commercial mortgage services. With over 1,000 employees and more than $60bn in mortgages under administration, the merger is set to create a powerhouse in the sector. The transaction garnered support from major investors including Diagram Ventures, Portage, NAventures, IGM Financial, BMO Capital Partners, Fonds de solidarité FTQ, and Fondaction.
The acquisition further strengthens Nesto’s commitment to delivering an empowering and transparent financing experience to Canadians. It also emphasizes the strategic alignment and cultural fit between the two companies, poised to set new industry standards.
Additional benefits of this merger include continued service to a vast network of partners and clients, with CMLS Group executives and employees transitioning to the new entity. CMLS shareholders will also hold an equity stake in the combined company.
Malik Yacoubi, CEO of nesto, said, “This acquisition reinforces our commitment to delivering on our mission: to offer a positive, empowering and transparent property financing experience, simplified from start to finish, to all Canadians.
“Combining our strengths will allow us to better serve Canadians and set new standards in the mortgage industry. We look forward to building Canada’s Mortgage Ecosystem of the Future together with our new colleagues at CMLS.”
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