Duo Bank of Canada has completed the acquisition of all outstanding shares of subprime lender Fairstone Financial Holdings.

Duo Bank first brokered a deal to purchase Fairstone Financial from investment firms J.C. Flowers & Co and Varde Partners, back in February last year.

Fairstone Financial is a responsible credit solutions provider for near-prime borrowers with assets worth over $3bn, on a consolidated basis. It is based in Montreal, Quebec.

As per the agreed terms, Duo Bank has taken over the operations, subsidiaries, as well as nearly 1,400 employees of Fairstone.

However, Fairstone will continue operating under its own name.

The financial details of the transaction were not divulged.

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Duo Bank CEO Trudy Fahie said: “We are pleased to be partnering with the talented team at Fairstone in pursuit of our complimentary and aligned strategic growth objectives, including our mutual, community-driven focus on providing Canadians with access to financial solutions that fit their needs.”

Fairstone president and CEO Scott Wood said: “The closing of this transaction represents an exciting new phase of growth for Fairstone and additional opportunities for our customers, employees and stakeholders.

“We look forward to partnering with Duo Bank, Stephen, Centerbridge and the Ontario Teachers’ teams, as we execute our multi-year growth strategy with a strong customer and community focus driving our financial product offerings.”

Duo Bank hired RBC Capital Markets and CIBC Capital Markets as financial advisors and Torys and Freshfields Bruckhaus Deringer US as legal counsel on the transaction.

On the other hand, the legal counsels for Stephen Smith, Centerbridge, and Ontario Teachers’ were McMillan, Willkie Farr & Gallagher, and Osler, Hoskin & Harcourt, respectively.