Flexiti Financial acquires $250 million of TD’s private label credit card portfolio

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POS financing platform Flexiti Financial has acquired TD Financing Services’ (TDFS) Canadian private label credit card portfolio, which is valued at approximately $250 million.

Flexiti’s transaction is financed by $350 million in credit facilities led by Credit Suisse AG, Cayman Islands Branch, and a syndicate of mezzanine lenders. Globalive Capital, a founding investor in Flexiti, also led an equity round of over $50 million, giving them a controlling position in Flexiti.

The acquisition adds more than one million new credit card customers—and 900 new merchant locations.

The acquisition adds more than one million new credit card customers—and 900 new merchant locations currently offering TDFS credit card financing at their locations—to Flexiti’s client base.

“Since our inception, Flexiti has experienced tremendous growth by following one simple mantra: our retailers are our partners, and we put them at the core of everything we do,” said Peter Kalen, founder and CEO of Flexiti. “This acquisition of TDFS’ private label credit card portfolio represents an important milestone for our company, and the consumer lending space in Canada, as it instantly positions us as one of the largest consumer lenders in the country with a cardholder base of over 1 million Canadians. We’re thrilled to welcome our new retail partners to the Flexiti network and look forward to working closely with them to drive sales and customer loyalty through our industry-leading point-of-sale financing platform.”

Founded in 2013, Flexiti launched to provide big-ticket retailers with POS financing. The platform establishes a dedicated line of credit by creating a virtual private label card for customers with low or no-interest financing.

The company raised a $5 million Series A in November 2016 with follow-on funding from Globalive Capital, and last raised $6.25 million in November 2017.

“Businesses are looking for alternative financing options tailored to their customers’ lifestyles or needs, and Flexiti is uniquely positioned to capitalize on this growing market trend,” said Anthony Lacavera, founder and chairman of Globalive Capital. “This investment aligns with Globalive Capital’s core principle of finding companies and entrepreneurs that are breaking down barriers and challenging the status quo by providing them with the resources they need to accelerate growth.”

Lacavera’s Globalive Technology has also entered into a joint venture with Flexiti to build blockchain and artificial intelligence technology to be integrated with Flexiti’s operations.