- goeasy (GSY) has announced a commercial partnership and $40 million equity investment in Canada Drives
- goeasy’s point-of-sale financing brand, LendCare, will become a preferred non-bank financing provider within Canada Drives’ online automotive retail platform
- Canada Drives’ innovative platform enables customers to shop, purchase, finance, and trade-in vehicles online
- Canada Drives is the largest dedicated online car shopping and to-your-door delivery platform in Canada
- goeasy Ltd. provides non-prime leasing and lending services
- goeasy Ltd. (GSY) opened trading at C$101.79
goeasy (GSY) has announced a commercial partnership and $40 million equity investment in Canada Drives.
goeasy’s automotive and point-of-sale financing brand, LendCare, will become a preferred non-bank financing provider within Canada Drives’ online automotive retail platform.
Each year in Canada there are more than three million used vehicles sold, worth nearly $40 billion in sales volume. Canada Drives’ innovative platform enables customers to shop, purchase, finance, and trade-in vehicles online. goeasy will provide automotive financing to a committed portion of the non-prime borrowers who purchase and finance a vehicle through Canada Drives platform. The partnership will help goeasy accelerate its plan to become the leading non-bank lender in the $58 billion non-prime Canadian automotive finance market.
Concurrent with the strategic partnership, goeasy will acquire a minority equity interest in Canada Drives, for an aggregate price of $40 million, to be paid in four installments.
“Expanding our automotive financing program is a key strategic growth initiative,” said Jason Mullins, goeasy’s President and Chief Executive Officer,
“We are excited about our partnership and investment in Canada Drives, which will support their mission to be the easiest place to buy or sell a car online in Canada. As online car shopping becomes more common, Canada Drives is well positioned to be the industry leader. They have built an impressive automotive retail platform with an emphasis on exceptional customer experience, while scaling the business to a meaningful level in a short time,” Mr. Mullins continued, “After eight years as an exclusive online lead generation partner that has referred almost 100,000 customers to our easyfinancial brand, we are thrilled to see our relationship expand into a new line of business. Our partnership and investment will help Canada Drives accelerate their growth and allow us to capture an even greater share of the automotive financing market, on our journey to become Canada’s largest non-prime consumer lender.”
“Our partnership and technology integration with goeasy will further enable us to grow our inventory, enhance our platform, and improve our financing programs for Canadian consumers looking to buy and finance their car online,” said Cody Green, Canada Drives’ Founder and Co-Chief Executive Officer, “As goeasy has proven to be a leader in the consumer lending market, they are an ideal business partner with a common vision for a seamless car buying experience. We also welcome goeasy as a strategic investor in our business and look forward to working with them as a long-term partner.”
Mississauga-based goeasy Ltd. provides non-prime leasing and lending services through its easyhome, easyfinancial and LendCare brands. The company offers a wide variety of financial products and services including unsecured and secured instalment loans.
Canada Drives is the largest dedicated online car shopping and to-your-door delivery platform in Canada.
goeasy Ltd. (GSY) opened trading at C$101.79.
