was already a fast-growing digital challenger in banking. With a $470-million deal to acquire Concentra Bank, it is looking to cement its place as a leading alternative to Canada’s biggest banks.
Concentra is a mid-market digital bank, recently rebranded as Wyth Financial, with roots stretching back to 1950s Saskatchewan. In retail banking, it is a small player in mortgages and savings accounts, and it offers treasury services, commercial lending and leasing, as well as mortgage securitization. It is also the largest provider of wholesale banking and trust services to most of the country’s credit unions outside Quebec, and a lender to financial technology startups.
“Concentra happens to be extremely close to our business, so by being able to add scale with minimal risk, we add a lot more muscle to be able to achieve our objectives,” Mr. Moor said. “We really understand the assets.” To protect its capital levels, Equitable will pay part of the cash purchase price by raising $200-million through a bought deal offering of subscription receipts, and the rest using a credit facility from a syndicate of banks. It will pay a $35.7-million premium to book value of common equity, which could fluctuate until the closing date.
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