Further investigation surrounding Finsure’s acquisition of LoanKit yesterday has revealed the aggregator wasn’t listed for sale when the retail finance brokerage made its move.
While Finsure managing director, John Kolenda, wasn’t able to divulge how much his company paid for LoanKit, telling Australian Broker that, ‘for the time being, that will remain strictly confidential’ – media reports indicated the sale would have a $1.2 million impact on Mortgage Choice’s 2013/14 earnings.
For his part, Kolenda says the decision to approach Mortgage Choice over the acquisition of LoanKit was due to a ‘strategic fit’.
“The two models are very closely aligned and from a strategic sense, the complementary propositions and main services within each group made it one very powerful entity that could deliver amazing value to brokers – and then from brokers to the consumer,” he says.
Kolenda says further aggregator acquisitions are on the cards as well, adding that Finsure’s plans going forward include an emphasis on the growth of the broader aggregation business, as well as integrating a ‘broader’ value proposition for brokers looking to diversify within the group.”
“[We plan to help brokers] offer a broader experience for their customers and continue to look for further acquisitions and organic growth. We’re growing quite rapidly just organically, so with both the businesses, we’ll focus on recruitment and organic growth and provide our existing brokers with the support structures [they need] – and then also grow through further acquisitions that might pop up.”
He says it will remain business as usual for LoanKit brokers, who will continue to function under the brand.
“Everything will remain as it is for LoanKit brokers. If anything, what will happen is they’ll get a broader value proposition under both models.”
Kolenda believes now is an ‘exciting’ growth period for the broking industry and that the expansion of Finsure’s aggregation business is a sign of the times.
“The broker market share is increasing and aggregators are looking at the value, support infrastructure and a number of other components that help [brokers] build a solid and capable business…People like us, we’re excited, because we see the opportunity to support these brokers to increase their market share overall.”