Finastra enters a definitive agreement to sell Canadian-based Collateral Management Corporation business to Teranet, a Toronto-based pioneer in electronic registration services.
London, UK and Toronto, Canada, 25 June 2018 – Finastra today announced that it has entered a definitive agreement to sell its Canadian-based Collateral Management Corporation (CMS) business to Teranet. The transaction is expected to close in July 2018, subject to required regulatory approvals and customary closing conditions.
CMS is the leading provider of lien registration services, recovery services and insolvency management solutions to Canadian lenders. Teranet is Canada’s leader in the delivery of statutory registry services. The transaction will include all of CMS’ registration and recovery solutions.
CMS will join Teranet as a new complementary line of business. Jointly, they will deliver enhanced, integrated solutions to a broad set of financial services customers, leveraging investments in technology, rich insightful data, and market leading electronic registry and workflow platforms.
“CMS is the largest national provider of registration and recovery solutions to Canadian lenders, and we firmly believe that it will thrive under new ownership. This divestiture is in keeping with our long-term strategy, and the sale will provide the right environment for our customers and employees to succeed over the long-term and innovate together in the Registry and Recovery businesses,” said Simon Paris, Chief Executive Officer, Finastra.
“We are pleased to bring together D+H Collateral Management Corporation’s and Teranet’s expertise in registries, technology solutions and operations,” says Teranet CEO, Elgin Farewell. “This transaction creates synergies that will significantly extend our financial services business across Canada.”
Finastra advisors for this transaction were BMO Capital Markets and Stikeman Elliott LLP. The financial details of the deal were not disclosed.
Finastra unlocks the potential of people and businesses in finance, creating a platform for open innovation. Formed in 2017 by the combination of Misys and D+H, we provide the broadest portfolio of financial services software in the world today-spanning retail banking, transaction banking, lending, and treasury and capital markets. Our solutions enable customers to deploy mission critical technology on premises or in the cloud. Our scale and geographical reach means that we can serve customers effectively, regardless of their size or geographic location-from global financial institutions, to community banks and credit unions. Through our open, secure and reliable solutions, customers are empowered to accelerate growth, optimize cost, mitigate risk and continually evolve to meet the changing needs of their customers. 48 of the world’s top 50 banks use Finastra technology.
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