Jefferson Capital completed the acquisition of Canaccede Financial Group, a buyer of charged-off consumer receivables and insolvencies in Canada.
Jefferson Capital and Canaccede will remain as independent companies focused on servicing their clients and consumers. Scott Coffin, formerly president of Canaccede, was appointed Canaccede’s CEO effective immediately. He replaced co-founder Andy Szemenyei who will join J.C. Flowers on Jefferson Capital’s board of directors. J.C. Flowers, a private investment firm specializing in the financial services industry, is the principal shareholder of Jefferson Capital.
“From the moment we were introduced to the Jefferson Capital team, it was clear our values of customer respect, long-term client relationships and innovative product development were in complete alignment. We are very excited to leverage the best practices of both companies to deliver improved economic value and world class service for our clients,” Bryan Szemenyei, newly appointed president of Canaccede Financial Group, said. “Our organization and leadership will remain consistent, but we will be seeking knowledge-sharing opportunities across organizations in areas such as analytics and modeling and compliance best practices. Combined with the financial strength and operational experience of Jefferson Capital, we have a strong conviction that this transaction will greatly benefit our staff, clients and customers.”
Canaccede’s management team and board of directors will remain in place, and David Burton, founder and CEO of Jefferson Capital, will join Canaccede’s board.
“The acquisition of Canaccede will further strengthen Jefferson Capital’s track record of consistent growth and profitability, founded on industry leading advanced analytics, modeling and multi-channel collections capabilities,” Burton said. “Canaccede’s strength in Canada is unmatched, and their proven history of strong performance and desire to innovate made them an obvious candidate for collaboration. The two companies already share common products and services, a similar market approach and a mission to be the best option for creditor grantors to maximize the value of their consumer receivables.”
“We have been eager for Jefferson Capital to enter the Canadian market, and with Canaccede, the company has found a partner that is well-known and respected in the Canadian financial services industry,” Thomas Harding, managing director at J.C. Flowers, said. “The combination of the two companies will provide their customers with access to additional services, which are particularly needed in times of economic uncertainty.”
In connection with the transaction, legal advice was provided to Jefferson Capital by Stikeman Elliott as well as by Weil, Gotshal & Manges.
Canaccede was founded in 2008 and is a full-service partner of purchasing and servicing solutions for financial institutions managing distressed and insolvency receivables in Canada.
Founded in 2002, Jefferson Capital is a purchaser and servicer of consumer charged-off and bankruptcy receivables in the United States and United Kingdom.