Financeit, a financial technology firm, and Concentra, a finance and trust solutions provider for Canada's credit unions , have agreed to acquire TD Bank Group's indirect home improvement financing assets having a book value of about $339m.
Concentra will buy 45,000 TD loans and over 800 merchant dealers will be assigned to Financeit, which runs a cloud-based point-of-sale financing platform.
The acquisition represents Financeit's first major acquisition since entering the point-of-sale financing market in 2011.
The fintech firm will take over the servicing of these loans and all future point-of-sale loans will originate on the Financeit technology platform following the acquisition.
Financeit founder and CEO Michael Garrity said: "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.
"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."
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Loan origination on the TD platform is scheduled to close by October 2016.
Concentra wholesale banking executive vice-president Dallas Marce said: "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.
"Our next step is to leverage this acquisition to develop new investment offerings for credit unions that align with their business needs."