Under the terms of the agreement, Element Financial will buy all of the Nexcap shares in addition to Nexcap’s current portfolio of financial assets.
The transaction is expected to be immediately accretive to shareholders of Element Financial.
Element’s president Bradley Nullmeyer said that Nexcap offers direct financing and vendor financing support to equipment dealers, distributors and manufacturers with a particular focus on technology and transportation equipment in the Canadian market.
"We are looking forward to supplementing Nexcap’s established origination volumes by bringing a broader range of sales financing tools to these distribution channels and building deeper and more durable relationships with their customers," Nullmeyer added.
The transaction is likely to close on or before 28 January 2013 and is subject to regulatory approval.
