Combination with CMLS puts more than $60 billion in mortgages under its administration
Digital mortgage lender Nesto has acquired the third-largest mortgage finance company in Canada, CMLS Group, which it says makes it the largest technology-enabled lender in Canada.
Nesto said it wiIl continue to serve both lenders’ partners and clients, with all CMLS Group executives and employees transitioning to the combined entity. CMLS shareholders will have an equity stake in the combined company, it added.
“Combining our strengths will allow us to better serve Canadians and set new standards in the mortgage industry,” Nesto chief executive Malik Yacoubi said in a press release. “We look forward to building Canada’s mortgage ecosystem of the future together with our new colleagues at CMLS.”
It said the transaction included investments from Diagram Ventures, Portage, National Bank’s NAventures, IGM Financial, BMO Capital Partners, Fonds de solidarité FTQ and Fondaction. The value was not disclosed.
All Nesto, CMLS and Intellifi brands will remain under the combined company.
Its chief executive, Sam Brown, will serve as president and head the commercial division of the combined entity. Yacoubi will serve as chief executive.
“Joining forces with Nesto will accelerate our next chapter of growth and further help our people, partners and clients succeed,” Brown said.