Financeit acquires rival loan business Simply Group Financial
Financeit Canada Inc. is expanding its share of the Canadian home improvement financing market by acquiring rival Simply Group Financial.
Financeit, which offers point-of-sale financing for home improvement, recreational vehicle and retail industries, announced on June 26 that it closed a deal to buy Simply Group’s over $1.5-billion assets, SNAP Home Finance and certain assets of EcoHome Financial.
“We’re thrilled to announce another milestone in our growth journey as we focus on expanding our market footprint and our enduring commitment to the Canadian point-of-sale financing market,” Michael Garrity, Financeit chief executive said in a press release.
The terms of the transaction were not disclosed.
In an interview, Garrity said the merger brings the combined origination of about $1.5 billion annual loan volume, including Financeit’s $1 billion in loans booked last year and Simply Group’s $400 million loans booked. But he said the company’s goal is to do about $2 billion or more next year on a combined basis.
He said they consider the size of their market to include all large ticket home improvement sales that done in Canada, which makes the market $70 billion in size.
“Market size against everyone who does what we what we do today in the market, we’re the largest by a lot. But against the size of the market we’re actually going after, we’ve got a lot of work to do,” he added.
Financeit’s biggest competition comes from home equity lines of credit or HELOCs, which Garrity said have been shrinking in capacity as the value of homes decrease.
The takeover follows Financeit’s acquisition by InterVest Capital Partners in 2022.
Toronto-based Financeit provides payment plans to enterprise businesses, big-box retailers, OEMs and
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