Franchise brokerage Mortgage Choice has made its first foray into aggregation after purchasing Sydney based boutique aggregation group Loankit.
Under the specifications of the acquisition, Mortgage Choice will take ownership of Loankit’s information technology platforms, loan book and contracts with 50 mortgage brokers.
The aggregation arm, which will be launched in the first quarter of 2010, will operate independently of the franchise business and provide a means to take advantage of further growth opportunities.
”Through this asset purchase we can leverage our strengths and develop a truly complementary business, making available the necessary platforms to start an exclusive, premium mortgage aggregation arm early next year,” Mortgage Choice chief executive officer Michael Russell said.
The news comes just weeks after Mr Russell told Mortgage Business that an acquisition for the ASX listed brokerage was imminent.
“We are actively pursuing various acquisition targets that fall in line with our company requirements,” Michael Russell said in early October.
Mr Russell said that acquisitions and alliances are necessary to strengthen Mortgage Choice’s growth. He also reaffirmed Mortgage Choice’s “intense focus" on franchise recruitment alongside the diversification of its service offering.
“As recently stated, our overriding strategy is to increase housing finance market share and customer share of wallet,” Mr Russell said.
“Loankit provides an essential platform to enable Mortgage Choice to enter the aggregation sphere with confidence.
“We are serious about cementing our position as Australia’s largest independently-owned mortgage broker and we know sizeable changes are needed to keep us top of mind with customers, potential franchisees, investors, analysts and other industry participants.
The purchase will be completed on 1 December 2009.
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