Deals
Desmarais-Backed Mortgage Firm Nesto Acquires Lender CMLS
- The deal brings its assets under administration to over C$60B
- Borrowers’ rate shock represents a chance to gain clients: CEO
Homes in Hercules, California.
Photographer: David Paul Morris/BloombergThis article is for subscribers only.
Nesto Inc., a Canadian online mortgage company backed by Montreal’s Desmarais family, struck a deal to acquire real estate financier CMLS Group, vaulting it to more than C$60 billion ($43.8 billion) in mortgages under administration.
The companies didn’t disclose financial terms of the deal, which will result in a merged entity with more than 1,000 employees across 10 offices. The transaction was backed by investments from Diagram Ventures, Portage and IGM Financial — all three are affiliated with the Desmarais clan — as well as National Bank of Canada and others, according to a statement Friday.