Infor Finds Qualifying Deal as Element Financial Split Endorsed

  • Infor becomes first Canadian SPAC to get required transaction
  • Element’s board approves split into two separate companies

Infor Acquisition Corp. will become Canada’s first special purpose acquisition company to find a required qualifying transaction after agreeing Monday to participate in the splitting of Element Financial Corp.

Shareholders of Infor will receive shares of Element Financial’s commercial-finance business at fair market value after the unit is carved out of the Toronto-based company, Infor said Monday in a statement. Element Financial, one of North America’s largest equipment-finance firms, said in a separate statement that its board approved a plan to split into two publicly traded companies, and disclosed the agreement with Infor.

Infor was one of five SPACs established last year in Canada. Such buyout vehicles are designed to acquire one or more businesses or assets within a specified period of time. Infor, led by former GMP Capital Inc. investment banker Neil Selfe, raised C$230 million ($174 million) in its May initial public offering.

“It’s the ultimate win-win: a win for Element shareholders and a win for our shareholders,” Selfe said in a phone interview. “We looked at over 40 transactions, we conducted extensive due diligence on approximately 20 transactions and the one that we think absolutely delivers the best value to our shareholders is this combination.”

Element said it aims to complete its split by October, creating Element Fleet Management Corp. under Chief Executive Officer Bradley Nullmeyer; and ECN Capital Corp., a North American commercial lender led by CEO Steven Hudson.

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