The Toronto-Dominion Bank (TD) and Wells Fargo have unveiled a deal through which TD will buy the Canadian Direct Equipment Finance operation of Wells Fargo, which is “subject to certain closing conditions,” according to a Thursday (Jan. 14) announcement.
It is anticipated that TD’s acquisition of the business will close in the first six months of this year “subject to receipt of regulatory and Competition Act approvals and clearance, and satisfaction of other customary closing conditions,” according to the announcement.
“[The acquisition] expands our competitive position in Canada’s Equipment Finance industry, builds on our strong track record of legendary customer service, and puts us in a unique position to offer an increased range of in-demand products and services,” David Pinsonneault, executive vice president, Commercial and Industrial, Canadian Business Banking, TD Bank Group, said in the announcement.
Wells Fargo’s Canadian Direct Equipment Finance business is based in Ontario and has other offices throughout Canada in locations such as Calgary and Montreal. The business has 1.5 billion Canadian dollars (approximately $1.2 billion) in assets and more than 120 staffers. It offers loans and leases for a complete assortment of commercial equipment for Canadian companies.
“This group of talented Canada-based employees and their equipment finance customers will benefit from TD’s strong franchise and allow us to focus our efforts on our U.S. equipment finance capabilities while continuing to serve our asset-based lending and distribution finance customers in Canada,” Head of Wells Fargo Commercial Capital David Marks said in the announcement.
In separate acquisitions news, IBM has purchased Canadian FinTech Expertus Technologies in an effort to bolster its hybrid cloud and artificial intelligence (AI) infrastructure in addition to its digital payment strategies.
Expertus conducts business in cloud services for the financial sector with more than 1,000 credit unions, banks, businesses and regulatory agencies. It’s also among the biggest Society for Worldwide Interbank Financial Transactions (SWIFT) North American services bureaus.