OnDeck (NYSE: ONDK), a small business online lending platform, announced last week it has entered into a definitive agreement to combine its Canadian lending operations with Evolocity Financial Group (Evolocity), a private Montréal-based online small business lender.
According to OnDeck, The combined enterprise, to be branded OnDeck Canada, will be majority owned by the online lender and will offer a wide range of financing options to small businesses across Canada. It was revealed:
“The transaction will combine the direct sales, operations, and local underwriting expertise of the Evolocity team with the marketing and business development capabilities of the Toronto-based OnDeck team. The combined enterprise will also benefit from the scale, technology and data analytics of the wider OnDeck group. Neil Wechsler will serve as Chief Executive Officer of OnDeck Canada, and the management team will includeEvolocity co-founders David Souaid as Chief Revenue Officer and Harley Greenspoon as Chief Operating Officer.”
While sharing more details about the partnership, Noah Breslow, Chairman and CEO of OnDeck, stated:
“The combination of OnDeck’s Canadian operations with Evolocity will create a leading online platform for small business financing throughout Canada and represents a significant investment in the Canadian market. There is an enormous need among underserved Canadian small businesses to access capital quickly and easily online, supported by trusted and knowledgeable customer service experts.Working together with the outstanding Evolocity team, we will provide a broad range of financing options to further enhance the small business lending experience across Canada.”
OnDeck reported that it has originated over CAD$200 million in online small business loans in Canada since entering the market in 2014. Meanwhile, Evolocity has provided over CAD$240 million of financing to Canadian small businesses since 2010. The platform notably uses proprietary risk scoring models, data aggregation, and electronic payment technology, along with Canadian credit and financial performance data to underwrite and facilitate small business financing. Neil Wechsler, CEO of Evolocity Financial Group, went on to add:
“We are excited to join forces with OnDeck, the North American leader in online small business lending, to enhance our best in class digital financing solutions to small businesses across Canada. Additionally, this transaction will augment our data science and analytics capabilities to help deliver an unparalleled merchant experience. The new OnDeck Canada is well positioned to be a leader in the Canadian marketplace.”
