Bond providers Deposit Power and Deposit Assure are tying the knot, creating the largest bond group in Australia as M&A activity accelerates nationwide.
Deposit Power, which is part of London headquartered credit insurance agency Credeq Group, has fully acquired Deposit Assure for an undisclosed amount. The company declined to comment on the sale price.
Both Deposit Power, which has been around for 30 years, and 11-year-old Deposit Assure, work with brokers, real estate agents, solicitors, conveyancers and other vendors, offering deposit bonds as an alternative to cash deposits in property transactions.
Ryan Dinsdale, chief executive officer of Deposit Power, said the acquisition was in response to growing demand in the market.
"We've seen strong growth in both the volume and value of deposit bonds issued as buyers increasingly look for alternatives to tying up cash in a tight property market," he told Australian Broker. "This acquisition allows us to invest further in systems, underwriting and service, while continuing to deliver certainty at exchange and dependable outcomes through to settlement.”
The firm said it plans to continue investing in systems, underwriting and service capability to increase volumes and streamline processes. The CEO added that the acquisition will strengthen the firm’s market presence, lift visibility among brokers and support its scale-up.
"As a larger, stronger player we can invest in making more people aware that there is a more flexible alternative to cash deposits," Dinsdale said. "We can relieve some of that pressure in the market.
"In such a tight property market, Australians need a dependable alternative to cash," he added.
The merger could benefit brokers, potentially speeding up turnaround times in an already competitive market marked by housing shortages, rising interest rates and cautious lenders.
"Bringing Deposit Power and Deposit Assure together strengthens our ability to support brokers and their clients with certainty at exchange and confidence through to settlement,” Dinsdale said.
"For brokers, the focus is continuity and confidence," the executive continued. "Existing processes, relationships and service standards remain in place throughout the transition period. As the business scales and Australian buyers continue to experience a shifting property market, more brokers will be able to offer a safe and secure alternative to a cash deposit to their clients, backed by a global insurer and supported by consistent service."
Etienne Rizzo, chief executive officer of Deposit Assure, added that the tie-up "strengthens our foundation" thanks to Deposit Power's connection with global insurer HDI Global, "and introduces a policy framework that better reflects the demands of today’s market."
The transaction will proceed once regulatory approvals are secured. During the transition, existing processes will remain, and both brands will continue to operate side by side. Following the settlement, the intention is to transition to a single, unified Deposit Power brand, the company said.
The merger comes amid a wave of deal-making across Australia, with firms combining forces to navigate a shifting market landscape.
In 2025, global M&A deal volumes reached roughly $7.46 trillion AUD, (or $4.81 trillion USD), up from $5.27 trillion AUD, (or $3.4 trillion USD), the year before, according to MergerMarket data. That's an increase of nearly 42%. And the Australian market, while smaller, still kept pace.
That same year, publicly-announced deals to buy or merge with companies that are based in Australia reached $143.8 billion AUD (or $92.8 billion USD), according to Dealogic.
The impacts on the nation’s loan and property markets are already visible. Bank Australia acquired both Australian Unity Bank and Qudos Bank, in November and July of last year, respectively, while Regional Australia Bank and Summerland Bank formally agreed to merge their operations by 2026. There's also tie-ups between Auswide Bank and MyState Bank Limited, G&C Mutual Bank and Unity Bank, Teachers Mutual Bank Limited and Australian Mutual Bank Limited, and People's Choice and Heritage Bank, among others.
A few of the deals so far in 2026 include REA Group, parent company to Mortgage Choice and Athena Home Loans, among other brands, which agreed to purchase a majority stake in boutique commercial finance brokerage Simplicity Loans & Advisory in February, while Australian investment manager Challenger Limited revealed it was in advanced talks to acquire a 25% share in non-bank lender Pepper Money.
That same month, Australian private equity firm Recludo Group — which works by partnering with firms in the broking space to help them scale — purchased a majority stake in mortgage manager Thry Group.
"[The industry] is ripe for consolidation and investments," said Tim Brown, chief executive officer of Recludo. "A lot of that is because of the increase in administration and governance and compliance. Smaller firms just can't justify the costs anymore. So they need to scale."
