Vancouver-based FinTech Lendesk has announced Rock Holdings, the parent company of US-based Quicken Loans, has acquired a majority stake in the company. The financial terms of the acquisition were not disclosed.
“Our partnership with Rock Holdings will allow us to gain wisdom and insight from the world’s leading mortgage technology company.”
Lendesk’s network connects mortgage brokers with Canadian lenders. The platform was designed to serve as the single point of contact for brokers to submit, and lenders to approve, mortgage applications. Under the new agreement, Lendesk will continue to operate independently from its Vancouver headquarters under the leadership of Alex Conconi, the company’s founder and CEO.
“Rock Holdings and Quicken Loans are FinTech pioneers, known for revolutionizing the mortgage industry with game-changing technology,” said Conconi. “Our partnership with Rock Holdings will allow us to gain wisdom and insight from the world’s leading mortgage technology company, as we continue to improve the entire experience, from the time of application through closing.”
Lendesk launched its direct-to-lender mortgage application network in October, with the goal of creating a more streamlined mortgage origination process. Some of its partner companies included Scotia Mortgage Authority (Scotiabank), First National Financial, CMLS Financial, Equitable Bank, and Paradigm Quest.
Detroit-based Rock Holdings is the parent company to several US-based FinTech brands, including Quicken Loans, Rocket Homes, and Rocket Loans. Lendesk said through the acquisition, it will be able to acquire new skills and knowledge from Rock Holdings’ portfolio of FinTech companies, and will help accelerate the growth of Lendesk’s mortgage platform.
“In a short amount of time, the team at Lendesk has built technology to streamline communication and workflow between mortgage brokers and lenders in Canada, and established a strong network of brokers and lenders who are connected through Lendesk’s new platform,” said Jay Farner, CEO of Rock Holdings. “It is very rare that you come across a new company that understands the important role that culture, technology, client service and innovation play in its success.”
This is the second investment Rock Holdings has made in Canada over the last two years. In 2017, Rocket Homes, a subsidiary of Rock Holdings, purchased Toronto-based OpenHouse Realty, a company specializing in the development of proprietary home and real estate agent search technology. Quicken Loans also recently announced it will be opening 100-person technology centre downtown Windsor, Ontario, across the Detroit River from Quicken Loans’ headquarters.
Image courtesy Lendesk.