OnDeck (NYSE: ONDK), a small business online lending platform, announced on Tuesday it has formed a new partnership with HomeAdvisor to support home service professionals and companies on the HomeAdvisor network with access to transparent, flexible, and timely financing options. According to OnDeck, the collaboration will enable HomeAdvisor service professionals to effortlessly access leading online financing options to support their businesses and assist American families.
“With businesses beginning to reopen, contracting and building services demand continues to rise. Now, the professionals who use HomeAdvisor to find clients will also be able to use HomeAdvisor to further grow their business, finance their projects and further support homeowners around the nation.”
Jim Granat, Senior Vice President at Enova and Co-Head of OnDeck, spoke about the partnership by stating:
“We share a unified mission of expanding access to quality and transparent products for our customer base. Since the summer, we’ve seen an increasing demand for financing options for contracting and building professionals. Partnering with HomeAdvisor was a natural choice to further our mission and provide access and choice to small businesses. Through this partnership, HomeAdvisor professionals will have timely access to OnDeck’s suite of small business financing options, allowing them to remain focused on managing their businesses and the projects they’re taking on.”
Bryan Ellis, EVP of Operations at HomeAdvisor, then added:
“For pro businesses to continue to grow, access to capital is essential. We are excited to be partnering with OnDeck, who has proven to be a great resource for small businesses.”
The collaboration with HomeAdvisor comes less than six months after Enov completes its acquisition of OnDeck. The company previously revealed July 2020 it was in the process of acquiring OnDeck for 41.38 a share, including $0.12 in cash. Enova is a provider of online financial services to non-prime consumers and small businesses, providing access to credit. Enova has provided more than six million customers around the globe with access to more than $20 billion in loans and financing. The company notably has been growing its small business lending portfolio but the acquisition of OnDeck drives this segment from 15% of its business to about 60% of its lending operations.
Under the terms of the agreement, OnDeck shareholders received 0.092 of a share of Enova common stock and $0.12 in cash for each share of OnDeck held. Enova noted that the transaction is to result in approximately $50 million in annual cost synergies and approximately $15 million in run-rate net revenue synergies to be fully phased-in by year-end 2022.