Australian banking institution Macquarie Group has completed its acquisition of Cervus Financial Corp for C$12.5 million as part of the group's international expansion of its mortgage activities.
Cervus was established in 2004 as an industry initiative with leading mortgage broker companies and financial providers. Macquarie said that in the short term Cervus will continue to operate as Cervus, while current Cervus staff will become Macquarie employees.
Working exclusively through mortgage brokers, Cervus has carved an industry niche through introducing broker trailing commissions, which is new to the Canadian mortgage market, Macquarie said. The group added that the acquisition was an excellent opportunity to expand into the Canadian mortgage sector, which has grown every year for the past 15 years.
Macquarie’s executive director and global head of mortgages, Frank Ganis, said: We believe Cervus is a solid company, which has recently experienced a deficiency in working capital. Macquarie is committed to providing the necessary capital to drive this business forward and is a committed long-term participant in the Canadian market.
Mike Barrett, the current head of the Australian mortgage business, will be re-locating to Toronto as head of Macquarie Mortgages North America.