Aussie and Lendi merger announced in mega home-loan deal
Two home loan businesses for the price of one, that’s the big news from Aussie which will merge with Lendi, the online home loan platform.
The proposed transaction, announced mid-December, will combine Lendi’s market-leading digital technology combine with Aussie’s brand and significant broker and franchisee network,
The merged business will maintain a multi-brand strategy and is expected to deliver a range of benefits for both customers and brokers.
Aussie’s parent company, Commonwealth Bank of Australia (CBA), said it will deliver a greater choice of home loan lenders, products and ways for customers to engage with their mortgage broker either in person or online.
Aussie brokers and franchisees will be able to leverage Lendi’s technology and platform, including integration with lender credit-decisioning engines and regulatory and compliance tools.
Increased investment in both brands is expected to accelerate growth.
James Symond, chief executive officer of Aussie, said “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.”
Lendi shareholders will hold the majority shareholding of 55 per cent in the merged business, while CBA,will retain a 45 per cent shareholding and continue to provide funding for the Aussie Select branded home loan product.
David Hyman, CEO and co-founder of Lendi, said; “This is an exceptional opportunity to drive the growth and digitisation of two companies that have led disruptive change for the benefit of customers 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.”
ANZi (a subsidiary of ANZ) is a long-term partner and shareholder of Lendi. Subject to transaction terms and regulatory approval it is backing the merger and further investment into the new group.
Ron Spector, managing director ANZi, said “Lendi is at the forefront of the digitisation of the home loan market in Australia. We are excited by the opportunity of two great mortgage broker brands coming together to further this mission. We look forward to supporting the team in delivering this compelling customer proposition.”
Completion of the transaction is expected by mid 2021, subject to ACCC approval and other customary conditions.