Creates One of Canada's Largest Online Small Business Lenders
TORONTO, April 1, 2019 /PRNewswire/ -- OnDeck® (NYSE: ONDK), the leader in online lending to small business, today announced it has completed the transaction combining its Canadian operations with Evolocity Financial Group (Evolocity), a Montréal-based online small business lender. The combined companies are majority owned by OnDeck.
The successful transaction combines the local operations, technology and Canadian underwriting expertise of Evolocity with the marketing, business development and international online lending experience of OnDeck to offer small businesses in all provinces and territories of Canada a broad array of innovative financing options and a superior customer experience. Once the integration of the combined companies is complete, the business will operate under the existing OnDeck Canada name.
"The closing of this transaction signals a new era of online lending innovation on behalf of Canada's small businesses," said Noah Breslow, chairman and chief executive officer of OnDeck. "As one of Canada's leading online lenders to the crucial small business sector, we are well-positioned to provide financing options that will benefit Canadian small business owners from coast to coast."
The completed transaction establishes one of Canada's largest online lenders to small business. OnDeck Canada and Evolocity have each contributed their business operations and assets, and OnDeck has made an additional cash investment such that OnDeck owns a majority interest in the new combined entity. Other terms of the transaction were not disclosed.
Neil Wechsler will serve as chief executive officer of OnDeck Canada, and the management team will include Evolocity co-founders David Souaid as chief revenue officer and Harley Greenspoon as chief operating officer. The new entity has a Board of Directors chaired by Noah Breslow, OnDeck chief executive officer and includes OnDeck chief financial officer Ken Brause, OnDeck International president Rob Young, and the three Evolocity executives named above. OnDeck Canada will be consolidated and reported in OnDeck's financial statements with Evolocity's existing shareholder stake reported as a non-controlling interest.
OnDeck (NYSE: ONDK) is the proven leader in transparent and responsible online lending to small business. Founded in 2006, the company pioneered the use of data analytics and digital technology to make real-time lending decisions and deliver capital rapidly to small businesses online. Today, OnDeck offers a wide range of term loans and lines of credit customized for the needs of small business owners. The company also offers bank clients a comprehensive technology and services platform that facilitates online lending to small business customers through ODX, a wholly-owned subsidiary. OnDeck has provided over $10 billion in loans to customers in 700 different industries across the United States, Canada and Australia. The company has an A+ rating with the Better Business Bureau and is rated 5 stars by Trustpilot. For more information, visit www.ondeck.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority. Forward-looking statements can be identified by words such as "will," "enables," "targets," "expects," "intends," "may," "allows," "plans," "continues," "believes," "anticipates," "estimates" or similar expressions. These include statements regarding the expectation that the combined businesses will be a leading online small business lending platform in Canada and the implication that it will be successful in serving the needs of Canadian small businesses nationwide. They are based only on our current beliefs, expectations and assumptions regarding the future of our business, anticipated events and trends, the economy and other future conditions. As such, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and in many cases outside our control. Therefore, you should not rely on any of these forward-looking statements. Our expected results may not be achieved, and actual results may differ materially from our expectations. Important factors that could cause actual results to differ from our forward-looking statements include risks relating to: (1) our ability to integrate the Evolocity and OnDeck Canadian lending businesses, including unexpected costs and difficulties related to the integration; (2) the anticipated benefits of the transaction not being realized in full or at all, or taking longer to achieve than expected; (3) potential adverse reactions to the closing of the transaction that could negatively impact financial performance; (4) worsening economic conditions that may result in decreased demand for our financing offerings or services and increase our customers' default rates; (5) the effectiveness of our risk management efforts; (6) disruptions in credit markets and the availability and cost of our key funding sources; (7) our growth strategies, including our planned expansion in Canada through the Evolocity transaction and our ability to effectively manage that growth; (8) changes in U.S. or Canadian federal, state or provincial laws or regulations, or judicial decisions, if and when issued or enacted, involving licensing or supervision of commercial lenders, interest rate limitations, the enforceability of choice of law provisions in loan agreements, the validity of bank sponsor partnerships, the use of brokers or other significant changes; (9) our ability to prevent or discover security breaches, disruption in service and comparable events that could compromise confidential information held in our data systems or adversely impact our ability to service our loans; (10) our ability to hire and retain qualified employees necessary to fulfill the operational, technological and strategic goals of the newly combined company; (11) the impact of competition in our industry and innovation by our competitors; and other risks, including those described in our Annual Report on Form 10-K for the year ended December 31, 2018 and in other documents that we file with the Securities and Exchange Commission from time to time which are or will be available on the Commission's website at www.sec.gov. Except as required by law, we undertake no duty to update the information in this press release.
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SOURCE On Deck Capital, Inc.