Simply Group Completes Acquisition of Dealnet in Transaction Valued at over $243 Million

Deal brings Simply Group's assets under management to $1.45 billion

TORONTO, Nov. 30, 2020 /CNW/ - Simply Group Acquisition Corp., one of a group of companies known as "Simply Group," today announced that it has acquired and assumed control of Dealnet Capital Corp., completing its third major acquisition this year. The transaction, with an enterprise value of $243MM, includes $204MM of consumer loan assets, contributing net equity value of approximately $45MM. Simply Group's total assets under management now exceed over $1.45 billion, solidifying its position as one of Canada's largest non-bank suppliers of consumer credit.

The acquisition includes EcoHome Financial, Dealnet's consumer financing division. EcoHome Financial offers loans to homeowners, through an extensive dealer network, to acquire HVAC equipment and fund home improvement projects. 

"The Dealnet acquisition is highly strategic, and complementary to our business.  With Dealnet on board we have further cemented our competitive advantage in the home improvement financing space.  Our unprecedented dealer network will have access to a best-in-class suite of financing products and a significantly improved digital application experience," said Lawrence Krimker, Founder and CEO of Simply Group.  "No other Canadian home financing company can offer comparable opportunities to its dealers.  We will continually look for new ways to enhance our dealer programs and bolster the value we offer them."

Throughout its history, Simply Group has focused on innovation, with an unwavering commitment to building mutually beneficial relationships with dealers, OEMs and consumers. This has led to a successful disruption of the Canadian home improvement financing market which, in an age of ever-increasing consumer demand for best-in-class energy efficient alternatives, had grown complacent.

"We continue to focus on driving incremental revenue for our partner dealers because we know that our success is driven by their success.  We are committed to ensuring that our dealer network has the products and services they need to attract new clients and increase their revenues. The Dealnet acquisition, coupled with unprecedented access to our expanded national infrastructure, will enable us to continue to build the kind of innovative programs and partnerships that Canadians deserve," added Krimker.

About Simply Group
With more than $1.45 billion of assets under management, Simply Group (mysimplygroup.com) provides industry leading, high-efficiency, home comfort equipment and financing solutions to customers, to modernize their residential, commercial and industrial properties. Simply Group knows that its people are its greatest asset and is proud to be Great Place to Work-Certified since 2016. In 2020, Simply Group was also named Best Business of the Year by the Canadian SME National Business Awards.

SOURCE Simply Group

Patrick Erlich, Investor Relations, [phone], [email protected]