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One of Australia's largest lending platforms, Lendi, is about to become even bigger following a proposed merger with Aussie Home Loans.
The Sydney-based company, which was co-founded in 2013 by David Hyman (pictured), is the major partner in the merger announced today by Commonwealth Bank of Australia (ASX: CBA).
CBA will hold a 45 per cent interest in the merged entity, while existing Lendi shareholders will retain 55 per cent.
CBA says the merger will bring together Aussie's "significant network, strong brand and deep experience in supporting customers with their property goals, with Lendi's leading technology and platform".
Lendi is Australia's number one home loan platform, bringing together technology and home loan specialist advice to help Australians compare, apply and settle the right home loan for their needs. Using smart technology, borrowers are able to search more than 2,500 loan products from more than 35 lenders on the Lendi platform.
"We believe the combined business will have a stronger platform to offer enhanced digital capabilities for Aussie brokers and a superior experience for customers," says CBA chief executive officer Matt Comyn.
The merger is expected to help both businesses expand their operations. Lendi is based in Sydney with offices in Melbourne, Brisbane and Perth, employing about 400 people.
The company was established by Hyman and his experienced start-up partners Sebastian Watkins, Martin Lam and Mark Kalajzich and currently manages over $7 billion in home loans on its platform.
Aussie Home Loans has been operating for 30 years and has a retail network of over 970 brokers and more than 210 stores across Australia.
"The role of digital technology in strengthening customer outcomes, compliance and operational agility is only growing in importance and by coming together with a robust and trusted business like Aussie, we will be able to drive even stronger outcomes for more homeowners and brokers alike," say Hyman, the Lendi CEO.
The deal is subject to a number of conditions including ACCC approval. Settlement is expected in mid-2021.
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