Money manager Counsel Corp. (TSX:CXS) has signed a letter of intent to buy Street Capital Financial Corp., a Canadian residential mortgage lender.
Financial terms of the deal, announced Wednesday and expected to close in April, were not revealed.
Since beginning operations in 2007, Street Capital has grown rapidly and has originated more than $5.3 billion in mortgages to date.
Counsel is active in the mortgage lending industry through its FirstLine Trust unit.
Ed Gettings, CEO of Street Capital, said the deal will help his company grow.
“By leveraging Counsel’s capital markets expertise, as well as their strategic perspective as a pioneer in our industry, we see significant opportunities to work with our broker network to develop even more of the innovative products and services that have been hallmarks of Street Capital since we founded the company in 2007.”
Allan Silber, chairman and CEO of Counsel, also lauded the transaction.
“The long-term fundamentals for this industry are compelling, and under the direction of its experienced senior management team, we see great potential to continue Street Capital’s growth trajectory while creating real value for our shareholders.”