MONTREAL, June 21, 2024 (GLOBE NEWSWIRE) -- 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 information
Martin Aubut
CMO nesto
martin.aubut@nesto.ca
514.262.6712
About nesto
nesto 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 Group
CMLS 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.
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