Macquarie Mortgages has announced its acquisition of Canadian-based Cervus Financial for C$12.5 million (A$15 million) as part of a global strategy to selectively enter markets where it perceives there is a genuine opportunity to add value.
Cervus was established in 2004 by a group of broker companies and financial providers, and introduced broker trailing commissions to the Canadian mortgage market.
In the short-term, the business will continue to operate under its original name, although its staff will become Macquarie employees.
The current head of Macquarie’s Australian mortgage business, Mike Barrett, will relocate to Toronto to head up Macquarie Mortgages North America.
Craig Thompson, previous head of business banking, will become the new head of Macquarie Mortgages’ Australian operations.
Macquarie Bank executive director and global head of mortgages Frank Ganis said the acquisition provided an excellent opportunity for Macquarie to continue to grow its international mortgage business.
“Macquarie’s distribution skills and success in developing third party and broker relationships is an excellent strategic fit with Cervus,” he said.
“We are committed to providing the necessary capital to drive this business forward, and are a committed long-term participant in the Canadian market.”
