Buyout better positions leading SMB online lender to expand its digital financial product portfolio
[May 19, 2022] Leading online small business lender OnDeck Canada completed a management buyout from US based Enova International Inc. moving the business to 90% Canadian ownership. The transaction, which was completed May 19, 2022 signals management’s optimism about the future direction of the business and in the strong growth potential that exists in widening its digital credit product portfolio. The OnDeck Canada brand will be maintained following the close of the transaction.
The core management team is comprised of Neil Wechsler (CEO), Harley Greenspoon (COO) and David Souaid (CRO).
Buyout signals a new chapter
The transaction signifies a new and exciting chapter for OnDeck Canada but will have no impact on the current day-to-day operations, or its funding sources. There will be no disruption in the level of service the lender’s customers and partners have come to know and expect.
Neil Wechsler, commented, “The management team at OnDeck Canada is extremely pleased to have completed this transaction. We are grateful for the support of our employees, partners and financial sponsors and look forward to capitalizing on the significant opportunities that lie ahead.”
Mr. Wechsler further stated, “All across Canada over the last six months, we have seen an encouraging return in demand for our credit products and, we will continue to support the growth of Canadian small businesses. Our corporate priorities are clear: we will drive growth in our core loan book while maintaining overall credit performance; we will further innovate and introduce additional credit products in order to best serve the needs of SMB merchants across all industry segments; and we will ensure that OnDeck Canada continues to deliver the best digital credit experience and enhance customer service through innovation.”
Better positioned to support SMBs
The buyout reflects Management’s optimism in the company’s growing potential given that OnDeck Canada’s post-pandemic position is stronger than ever. It was able to provide lending support to more small business owners in March 2022 than ever before, making it OnDeck Canada’s most successful month in its history. This optimism is shared by the lender’s funding sources, who are also in support of the transaction.
Harley Greenspoon, commented, “We are excited to once again be operating as an independent, privately-held and Canadian majority-owned business. We believe that this structure aligns with the entrepreneurial mindset of our team and positions us well to respond to the rapidly evolving financial needs of Canadian small businesses. The past two years have been challenging for our sector, and on many of the small businesses we serve, but we have emerged stronger than before. In recent months, we have achieved a record number of new customer acquisitions, across the broadest range of industry sectors that we have ever serviced, all while maintaining robust portfolio performance metrics. We are grateful to our team whose efforts have put us in a position to execute on this transaction. We are also very thankful to the team at BMO Corporate Finance for supporting us not only in this transaction but throughout the past two years. The support and confidence shown to us by BMO provided us with the opportunity to, in turn, continue support our small business customers throughout this period.”
A renewed focus on innovation
Since 2015, OnDeck Canada’s mission has been to widen access to working capital for small businesses through technology. Along with the independence necessary to remain nimble and proactive, comes a renewed focus on the evolving needs of small businesses and the role of innovation in developing digital financial products to meet those needs.
David Souaid, commented “This is an incredibly exciting time for Fintech innovation for small business in Canada. We are entering a new era where small businesses have come to expect a seamless digital experience when looking for credit products. With a renewed focus around an end-to-end digital customer experience, the management team at OnDeck Canada is looking forward to executing on our mission to bring the widest array of credit products to SMB customers wherever and whenever they want it.
About OnDeck Canada’s core management team:
Neil Wechsler, Chief Executive Officer
Neil Wechsler has served as CEO and as member of the board of directors at OnDeck Canada (previously Evolocity Financial Group) since 2015. With over 20 years of entrepreneurial experience in fintech, Neil also brings a legal background, having briefly practiced law and holding degrees from McGill University in both Civil and Common Law. Prior to OnDeck Canada, Wechsler was Co-Chairman and CEO of Optimal Group Inc. (formerly Optimal Robotics Corp.) and grew the company from a technology start-up to a leading NASDAQ-listed self-checkout and payments company. Neil is the chair of the board of directors of the Canadian Lenders Association (CLA).
Harley Greenspoon, Chief Operating Officer
Harley Greenspoon has served as COO and as a member of the board of directors at OnDeck Canada (previously Evolocity Financial Group) since 2015. Prior to its merger with OnDeck, Harley co-founded Evolocity Financial Group (now OnDeck Canada) in leveraging his expertise in risk and credit management, strategy and analytics and legal affairs. Harley holds an HBA from the University of Western Ontario and a law degree from McGill University. Before his career in finance, Harley practiced law at a top-tier, NYC law firm, then moved on to become a VP at Northbridge Capital in Montreal.
David Souaid, Chief Revenue Officer
David Souaid has served as CRO and as member of the board of directors at OnDeck Canada (previously Evolocity Financial Group) since 2015. Formerly co-founder and president of Evolocity Financial Group (now OnDeck Canada), David brings over 15 years of experience focused on fintech to the business and is a driving force behind platform solutions, distribution, and product marketing initiatives. Prior to OnDeck Canada, David was Senior-Vice President of Sales and Marketing at Optimal Payments Inc. He later went on to become the Co-Founder and President of SterlingCard Payment Solutions, before starting Evolocity Financial Group.
About OnDeck Canada
OnDeck Canada is a national leader in reliable, accessible, and efficient online lending for Canadian small businesses, offering a wide range of financing products including Term Loans, Lines of Credit, and Flex Fund advances. Since 2015, OnDeck Canada has pioneered the use of data analytics and digital technology to make real-time lending decisions and rapidly deliver funding to Canadian small businesses in as fast as 24 hours. For more information, visit www.ondeck.ca.