Accord Financial and Concentra Bank formed a strategic alliance to allow both parties to deliver a broader range of banking and financing solutions to their clients. Accord and Concentra will also consider developing new products together as opportunities arise.
The alliance will capitalize on significant cross-referral opportunities, while Concentra’s investment in Accord will boost its capital base, paving the way for continued growth.
Accord’s asset-based lending, factoring and equipment finance solutions have been embraced by small and medium-sized businesses throughout Canada and the U.S. Through this strategic alliance, Concentra will offer Accord’s suite of innovative solutions through its network of 200+ credit unions, serving 5.5 million customers, of which approximately 10% are commercial clients.
“This alliance is an outstanding opportunity for us to reach a broad cross-section of the Canadian economy, especially in areas and industries under-served by the traditional banks,” said Simon Hitzig, Accord president and CEO. “We look forward to enhancing the business relationships each organization already has, and creating new ones together.”
Concentra, as a Schedule I chartered bank, offers a comprehensive suite of banking products, including deposits, cash management, senior bank debt, and trust services. Accord plans to offer these same products to its coast-to-coast network of business clients.
“This alliance enhances the solution set we can deliver through the credit union system and gives us access to a new channel to deliver our unique banking solutions,” said Concentra President and CEO Don Coulter. “Both organizations bring an entrepreneurial spirit to serving Canada’s business community, an approach that naturally puts us on the same page as our clients.”
In connection to this strategic partnership, Concentra has invested $5 million in unlisted Series B convertible unsecured subordinated debentures via private placement.
INFOR Financial acted as the exclusive financial advisor to Accord in connection with the establishment of the strategic partnership and the private placement.
