TORONTO — Flexiti Financial says it’s acquiring TD Financing Services’ Canadian private label credit card portfolio valued at roughly $250 million.
The Toronto company, which provides point-of-sale financing and payment technology, said the transaction provides it with a million new credit card customers and 900 new store locations for its network.
The added locations bring Flexiti’s total network to 3,500 and make it a leading private label credit card issuer in Canada, the company said.
“This acquisition of TDFS’ private label credit card portfolio represents an important milestone for our company, and the consumer lending space in Canada, as it instantly positions us as one of the largest consumer lenders in the country,” said Peter Kalen, founder and CEO of Flexiti.
The portfolio of cards targeted towards specific store brands includes merchants in the jewelry, furniture and home improvement categories, such as Peoples, Birks, Ethan Allen, La Z Boy and Kent.
TD’s decision to sell the Canadian portfolio aligns with its strategy of simplifying its business model and allows it to focus on its core businesses of TD credit cards, MBNA and TD business credit cards, said bank spokeswoman Julie Bellissimo in an email.
She noted that TD continues to operate the TD Financing Services business in the U.S.
Flexiti said that as part of its acquisition, Globalive Capital will make a $50 million equity investment in Flexiti to give them a controlled position in the company after being a founding investor.
The company said it has also secured $350 million in credit facilities to support the portfolio acquisition and its growth strategy.
The Canadian Press