Finastra today announced that it has entered a definitive agreement to sell its Canadian-based Enhancement Services business to Sigma Loyalty Group, a provider of enhancement services and marketing programs to Canadian financial institutions and retail partners. The transaction is expected to close at the end of June, subject to customary closing conditions.
Established in 2011, Finastra’s Enhancement Services business is one of the market leaders in credit and identity protection solutions in Canada.
Finastra’s core software solutions are largely focused on the business to business sector and primarily serve financial institutions, while the Enhancement Services business serves the end customer. As such, the transition of this business line to a company already well positioned in the consumer space enables Sigma Loyalty Group to take the business forward and maximize its potential, affording new opportunities to customers.
“This step is in keeping with our long-term strategy. Sigma Loyalty Group has significant expertise in its field and deep roots in the Canadian market. The sale will provide the right environment for our customers and employees in this space to succeed over the long term and further innovate,” said Simon Paris, CEO, Finastra.
Speaking about the purchase, Andy Jasuja, Founder and Chairman of the Sigma Group, parent company of Sigma Loyalty Group, said, “We’re excited about the opportunity this strategic acquisition presents, allowing us to leverage our strengths as a leader in the market and bolster our position in the enhancement services space.
Serge Rivest, CEO, Sigma Loyalty Group added, “This deal will further extend our capabilities with even more relevant products for consumers and will help us to continue to be the go-to partner for clients across a broad range of industries.”
The majority of net proceeds from the transaction will be used to invest in a number of growth initiatives at Finastra, enabling the company to execute against its long-term strategy.
Finastra’s advisors for this transaction were BMO Capital Markets and Stikeman Elliott LLP. The financial details of the deal were not disclosed.