nesto Acquires CMLS Group to Build Canada’s Mortgage Ecosystem of the Future
June 21 2024 - 7:30AM
nesto, Canada’s leading digital mortgage lender, announced today
the acquisition of the CMLS Group (“CMLS”), the third-largest
mortgage finance company in Canada. The combined entity will build
Canada’s Mortgage Ecosystem of the Future.
The acquisition of CMLS 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. 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.
“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.”
nesto and CMLS are committed to continuing to serve its vast
network of partners and clients. All CMLS Group executives and
employees will transition to the combined entity. CMLS shareholders
will have an equity stake in the combined entity.
“In addition to the strong business rationale for the
transaction, we were very impressed by the strong entrepreneurial
values at CMLS and how engaged employees are. There is a clear
culture fit for our organizations. We are excited to build the
Mortgage Ecosystem of the Future with CMLS,” shared Malik Yacoubi,
CEO of nesto.
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.
“Joining forces with nesto will accelerate our next chapter of
growth and further help our people, partners and clients succeed.
I’m delighted to build on our proud history and reputation with a
partner who shares our commitment to culture and delivering value
to partners and clients,” said Sam Brown, CEO of CMLS.
The teams at nesto and CMLS Group are excited to join forces,
united by a common culture of entrepreneurship, innovation and
ownership mindset. 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.
For more informationMartin AubutCMO
nestomartin.aubut@nesto.ca514.262.6712
About
nestonesto is Canada’s leading digital mortgage
lender. The company is on a mission to offer a positive, empowering
and transparent property financing experience, simplified from
start to finish, to all Canadians. nesto is delivering on this
mission by offering Canadians the most advanced direct-to-consumer
digital mortgage experience. nesto also enables Canadian Financial
Institutions to transform their mortgage experience via nesto’s
proprietary technology: the nesto Mortgage Cloud.
- Awarded 2023-2024 Canadian Mortgage Lender of the Year by the
Canadian Lending Association
- Awarded Best Mortgage Lender 2023-2024 by Forbes Advisor
- Awarded Deloitte’s Technology Fast
50™ program winners for 2023
About CMLS GroupCMLS Group is
one of Canada’s largest independently owned real estate finance
companies, with offices across the country. Founded in 1974, the
company provides a wide range of commercial lending services,
residential mortgages, and institutional services. Many of Canada’s
most prominent financial institutions, insurance companies and
investment managers rely on CMLS Group for a variety of critical
mortgage services.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3bd4b2ef-e72b-4c52-a54b-8f370b9c6793