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Firstfolio has moved into securitised lending after successfully completing the acquisition of Calibre Financial Services.
The company first started the acquisition process back in July as it looked to ramp up its distribution and overall presence in the mortgage market.
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According to Firstfolio's chief executive officer Mark Forsyth, the acquisition enables further diversification of the company's revenue streams and provides new growth opportunities.
These include the provision of professional loan and trust management services in Australia and overseas, as well as a range of additional services that are not limited to residential mortgages but can extend to a broad range of asset types.
"The acquisition of Calibre marks a transformational change for Firstfolio, giving us the scale and capability to enter the non-bank lending space, which had been largely vacated in Australia following the global financial crisis," Mr Forsyth said.
"Through the acquisition, we gain a securitised lending and trust management platform, allowing us to diversify our business into the trust management market while giving us additional options over funding, product, and pricing as a non-bank lender and servicer."
The net cash consideration to acquire 100 per cent of Calibre was $13 million, funded by a combination of cash and long-term debt from the Commonwealth Bank of Australia.
As part of the acquisition, Westpac has agreed to renew the existing Calibre facility at market terms and increase the warehouse facility from $300 million to $400 million, subject to finalization of legal documents expected by the end of December 2011.
This funding line from Westpac supplements the wholesale funds provided to Firstfolio by ING, Advantedge and Bendigo and Adelaide Bank.
Mr Forsyth said Calibre will sit under its newly formed Firstfolio Capital division, which is expected to contribute up to $3 million in Operating EBITDA in its first full year of operation.
Firstfolio has been very active in the acquisition space over the last two years.
The financial services provider has acquired five companies since March 2010 including Apple Group, First Chartered Capital, Loan Services Australia, Xplore Capital and Lease Choice.
