New investment funds fintech leader's acquisition of TD Bank Group's indirect home improvement financing unit
TORONTO, Oct. 6, 2016 /CNW/ - Financeit, a leading point-of-sale financing provider, today announced a new round of equity financing led by new investors--Pritzker family business interests advised by The Pritzker Organization, L.L.C. ("TPO") and DNS Capital, LLC ("DNS")-- as well as existing investors. This investment round of $US17 million ($CAD22 million) enabled Financeit to fund the recently-announced acquisition of TD Bank Group's indirect home improvement financing assets, which included the purchase of more than 800 merchant dealer agreements and the transition of a number of former TD relationship managers and operational staff. After a transition period, the transaction will also lead to Financeit servicing approximately 45,000 existing TD consumer loans.
The capital raise, which follows the close of a minority equity financing round led by Goldman Sachs in October 2015, will also support the ongoing needs of the company as it continues its rapid growth.
"This new investment demonstrates the strong confidence of the investment community in our market plans and our unique solution for North America's expansive point-of-sale financing industry," says Michael Garrity, Founder and CEO, Financeit. "As more merchants embrace the benefits of offering cloud and mobile-based financing options to their customers, Financeit expects to increase its sizable signature in this market. We continue to focus on innovation for our merchant partners and market growth through both organic tactics and acquisition."
Financeit has increased its lending activity in the home improvement industry by almost 200 per cent since 2015.
Financeit is a free-to-use platform that makes it easy for businesses to offer powerful financing options to their customers from any device. The company provides financing solutions through a safe and secure platform that traditionally were only available to big box retailers.
The Financeit brand is defined by its commitment to fairness, transparency and ease-of-use, with no hidden fees or backdated interest, and competitive interest rates. Since launching in 2011, Financeit has worked with over 6,000 home improvement, vehicle and retail businesses to process more than $1.5 billion in loans in Canada and the United States.
About The Pritzker Organization, L.L.C.
TPO provides merchant banking services to the business enterprise of Tom Pritzker's family. TPO is focused on its clients partnering with exceptional leaders to create value for its clients, partners and stakeholders over a long-term horizon. For more than 60 years, TPO has overseen and guided the development of dozens of companies across a wide variety of industries, including manufacturing, logistics, life sciences, hospitality, healthcare and services. Notable businesses include Hyatt Hotels, Triton Container and the Marmon Group. In addition to its core strategy of building long-term businesses, TPO is also active in advising on special situations, deploying capital across a wide spectrum of industries and in all forms of debt and equity. Additional information can be found at www.tpo.org.
About DNS Capital, LLC
DNS Capital is the investment office and internal merchant bank for the business enterprise of Gigi Pritzker and Michael Pucker's family. DNS Capital takes a long-term and flexible approach to investing by building relationships with business owners, management teams and entrepreneurs to align interests, evolve businesses and create lasting value with a sense of purpose and a sense of humor. To learn more about DNS Capital, please visit: www.dnscap.com.
SOURCE FinanceIt Canada Inc.
For further information: Emily Abrahams, PR & Communications Manager, Financeit, [email protected], 1-647-738-4134