Equitable Bank has announced an acquisition deal for Concentra Bank. The deal means that Equitable has now become the seventh-largest bank in Canada.
Chief Executive Officer of Equitable, Andrew Moor, and Equitable board chair commented on the acquisition deal. “This change will empower us to grow and serve customers in new and bold ways,” they noted in a joint statement.
The Acquisition Will Open More Opportunities For Equitable
Concentra’s trade name Wyth Financial is also included in the acquisition deal. It is a mid-market bank and the leading provider of wholesale banking and trust solutions to Canadian credit unions. The bank offers its services to 90% of credit unions in Canada. The acquisition of Concentra is set to open more opportunities for Equitable to offer its services to a larger population in Canada. Equitable is also planning to extend its banking services globally via more acquisition deals in the future.
As a digital bank with no physical brand, Concentra enjoys deep and trusted relationships with partners and customers. It also has a strong relationship with other financial institutions, fintech innovators, and independent mortgage brokers, according to Moor and LeGresley.
They added that the acquisition was necessary because of Equitable’s technology, scale, and overall capabilities. The company has all the right technology needed to merge with Concentra’s existing resources. This will help to pursue Concentra’s challenger bank purpose of ensuring innovation and change in the digital banking sector.
Equitable noted that its culture is in line with the cooperative spirit of the credit union movement and the company has pledged to ensure the growth of Concentra’s services to credit union customers.
Areas that will stand to gain in the collaboration include mortgage securitization, residential mortgages, equipment leasing, commercial lending, as well as trust and treasury.
Both Entities Will Operate As One After The Acquisition
The deal will also be establishing a credit union-centric advisory board to continue the existing relationship. The bank also wants to continue its partnership with origination partners, fintech partners, and mortgage brokers.
The deal is expected to be completed this year, which means that Equitable and Concentra will be operating as two separate entities until the deal is finalized.
After the merger, both entities will work together and have aligned goals.
Equitable Group Inc currently trades on the Toronto Stock Exchange. The bank is one of the largest independent banks in Canada. But the acquisition will even equip it with more resources to challenge top banking institutions in the country.