Toronto-based fintech company Flexiti Financial, a provider of point-of-sale (POS) financing, has announced that it has agreed to acquire the credit card business of Toronto-Dominion Bank (TD Bank) in a deal valued at $250mn.
The deal will bolster Flexiti’s position within the consumer lending space, positioning it as one of Canada’s largest lenders in a country that has a cardholder base of more than one million consumers.
“Since our inception, Flexiti has experienced tremendous growth by following one simple mantra – our retailers are our partners, and we put them at the core of everything we do,” said Peter Kalen, Founder and CEO of Flexiti.
“We’re thrilled to welcome our new retail partners to the Flexiti network and look forward to working closely with them to drive sales and customer loyalty through our industry-leading point-of-sale financing platform.”
As part of the deal, Glovealive Capital will make a $50mn investment in Flexiti, giving the private equity firm a controlling stake in the company having been a founding investor.
“A founding investor, Globalive Capital’s follow-on investment demonstrates its commitment to accelerating Flexiti’s growth and innovation in the alternative lending space,” a statement from Flexiti reads.
The fintech firm also secured $350mn in credit facilities to support this acquisition and its wider strategy.