Finastra selling its collateral management branch to Teranet
Simon Paris, Finastra
Finastra is (definitively) selling its Canada-based Collateral Management Corporation (CMS) business to Teranet, with the transaction expected to close in July 2018.
“CMS is the largest national provider of registration and recovery solutions to Canadian lenders, and we firmly believe that it will thrive under new ownership,” says Simon Paris, Finastra’s new CEO (he was promoted from deputy CEO in early June).
The process is currently subject to required regulatory approvals and customary closing conditions.
CMS provides lien registration services, recovery services and insolvency management solutions to Canadian lenders.
Teranet, a provider of statutory registry services in Canada, will receive all of CMS’s registration and recovery solutions as a new complementary line of business.
“This divestiture is in keeping with our long-term strategy, and the sale will provide the right environment for our customers and employees to succeed over the long-term and innovate together in the registry and recovery businesses,” adds Paris.
Finastra was advised by BMO Capital Markets and Stikeman Elliott LLP. The financial details of the deal were not disclosed.
