OnDeck has closed the merger between its Canadian operations and small business lender Evolocity Financial Group, also based in Canada.
The company announced in a press release Tuesday (April 2) that the merger, announced last December, is complete. Financial details of the deal were not made public.
Nasdaq reports said that OnDeck did note it made an additional investment to retain majority ownership of the combined entity. Evolocity has provided more than CAD$240 million (about USD$180 million) to small businesses since its launch in 2010, reports said. The combined business will continue operating under the OnDeck Canada name as one of the largest small business lenders in the country, OnDeck said.
“The closing of this transaction signals a new era of online lending innovation on behalf of Canada’s small businesses,” said OnDeck Chairman and Chief Executive Officer Noah Breslow in a statement. “As one of Canada’s leading online lenders to the crucial small business sector, we are well-positioned to provide financing options that will benefit Canadian small business owners from coast to coast.”
The new entity will be led by Chief Executive Officer Neil Wechsler, while Evolocity co-founders David Souaid and Harley Greenspoon will come on as members of its management team.
OnDeck first launched its small business lending operations in Canada in 2016.
News of its merger in Canada followed February’s release of OnDeck’s fourth quarter earnings, which beat analyst expectations. Breslow at the time said the year was a “pivotal” one for the company.
The company posted 20 cents per share, above previous estimates of 16 cents, and saw a 26 percent increase in net interest income to $105.4 million.
Brewlow pointed to future collaborations with traditional banks as a focus for the company moving forward.
“Most large banks now realize they must digitize their lending processes to remain competitive,” he said in February. “Some will build and some may buy and others will partner in that transformation process, and we want to be the partner of choice for those banks.”