Business

Financeit and Concentra acquire improvement financing business of TD Bank

Financial technology firm Financeit and Concentra, which provides wholesale finance and trust services to credit unions, have signed a deal to buy TD Bank's indirect home improvement financing business.
Homeowners are advised to get everything in writing when embarking on a home renovation. (Stew Miln/Associated Press/Canadian Press)

Financial technology firm Financeit and Concentra, which provides wholesale finance and trust services to credit unions, have signed a deal to buy TD Bank's indirect home improvement financing business.

Financeit and Concentra said the assets have a book value of $339 million.

Under the agreement, Concentra acquired 45,000 TD loans and more than 800 merchant dealers have been assigned to Financeit, which runs a cloud-based, point-of-sale financing system.

Financeit helps businesses offer financing options to their customers.

It says it 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 since it launched in 2011.

Financeit founder and CEO Michael Garrity says the deal will move the company into the fast lane.

"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," Garrity said in a statement Thursday.