A non-bank lender has enhanced the suite of products it offers borrowers through its acquisition of the remainder of an asset finance company it took a controlling stake in last year.
Resimac will assume full ownership of International Acceptance Group (IA Group) on 1 February 2021.
IA Group, soon to be renamed Resimac Asset Finance, provides a range of lending products including asset finance, secured business loans, personal loans and car loans.
According to Resimac CEO Scott McWilliam, the purchase is an “important milestone” for the group.
“Over the last 35 years, we have built a successful business originating secured lending assets that are readily securitisable. Launching Resimac Asset Finance is a natural progression that enables us to take advantage of adjacent opportunities as we further diversify our products and asset classes,” he explained.
“Diversification is a key strategy for the continued growth of Resimac Group, and Resimac Asset Finance will play a major role moving forward. While IA Group is already profitable today, our objective is for it to be a significant contributor to the Group’s profitability within the next five years.”
It was one year ago, on 1 January 2020, that Resimac Group acquired a controlling stake (60%) of IA Group and entered into an option agreement for the remaining 40%. To accelerate its expansion into new asset classes, Resimac decided to exercise the option early.
“With IA Group’s demonstrated success over the past 12 months and current opportunities within the lending sector, we made the decision to assume full ownership,” said McWilliam.
Resimac Asset Finance joins other businesses within the Resimac Group, including Resimac, Resimac NZ and homeloans.com.au as a wholly owned subsidiary.
“Resimac Asset Finance will benefit from the group’s existing infrastructure, including its global securitisation programme, established distribution networks and robust risk management framework,” McWilliam said.
“This enables it to strongly compete in the asset finance market, as well as leverage synergies with our residential mortgage operations," he added.