Online home loan platform Lendi and Aussie Home Loans have today announced they have entered into an agreement to merge, marrying the former's digital technology with the latter's "iconic brand" and significant broker and franchisee network.
The groups' intend for the proposed merger to both "create a market leader in the Australian home loan market" while also delivering a range of benefits for both customers and brokers, including:
Lendi shareholders will hold the majority shareholding of 55% in the merged business, while Aussie’s current owner, CBA, will hold a 45% shareholding and continue to provide funding for the Aussie Select branded home loan product.
Lendi CEO and co-founder David Hyman dubbed the proposed transaction an "exceptional opportunity" to drive the growth and digitisation of the two companies, both of which he sees as having "led disruptive change" in the Australian home loan market.
“Lendi was born digital. Our technology, platform and people have revolutionised not only how Australians access home loans but also market transparency. The role of digital technology in strengthening customer outcomes, compliance and operational agility is only growing in importance and by coming together with a robust and trusted business like Aussie, we will be able to drive even stronger outcomes for more homeowners and brokers alike," Hyman said.
Aussie CEO James Symond added, “The merger is another important step in the almost 29-year evolution of Aussie as Australia’s leading retail mortgage broker. We are currently posting record lending volumes through our network of over 970 brokers and over 210 stores and, by underpinning Lendi’s technology across our national broker network, we will further accelerate this growth and momentum.”
Completion of the transaction is subject to ACCC approval and other customary conditions, and is expected to occur by mid calendar year 2021.
