Leading digital mortgage lender nesto is acquiring Canada’s third-largest mortgage finance company in hopes of creating Canada’s Mortgage Ecosystem of the Future.
The acquisition of CMLS Group by nesto creates the largest technology-enabled lender in Canada.
The combined entity will be both a leader in residential and commercial mortgages, with over 1,000 employees across ten offices and more than $60 billion in mortgages under administration.
“This acquisition reinforces our commitment to delivering on our mission: to offer a positive, empowering and transparent property financing experience, simplified from start to finish, to all Canadians,” said Malik Yacoubi, CEO of nesto.
“Combining our strengths will allow us to better serve Canadians and set new standards in the mortgage industry. We look forward to building Canada’s Mortgage Ecosystem of the Future together with our new colleagues at CMLS.”
Established as a commercial lender in 1974, over the past 50 years CMLS has evolved into a leading lender, advisor, asset manager and software and services provider across nearly all commercial and single-family residential real estate markets in Canada.
CMLS delivers these products and services through CMLS Financial, Intellifi, and CMLS Asset Management.
Malik Yacoubi will be CEO of the combined entity. Sam Brown, will continue as President and Head of the Commercial Division. All nesto, CMLS and Intellifi brands will remain.
The transaction was supported by investments from Diagram Ventures, Portage, NAventures (National Bank of Canada’s corporate venture capital arm), IGM Financial, BMO Capital Partners, Fonds de solidarité FTQ and Fondaction.
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