Resimac takes controlling stake in IA Group

Resimac takes controlling stake in IA Group

Resimac Group Ltd (ASX: RMC) announce that it has taken a controlling stake in IA Group (effective 1 January 2020). The investment is in line with Resimac’s diversification strategy and facilitates expansion into new secured asset classes.

IA Group is a Sydney based finance company, participating in both secured commercial and consumer lending. IA Group was established in 2001 and has its own principally funded portfolio of $50 million.

Resimac Chief Executive Officer, Scott McWilliam, said, “Our investment in IA Group allows us to fulfil a key part of our growth and diversification strategies. It allows Resimac to gain synergies from our existing distribution network and provides the platform for Resimac to enter the asset finance market. In addition, we are able to leverage our strong securitisation program to support this activity”.

IA Group Managing Director, Mike Cunningham, said, “It’s an exciting opportunity to partner with Resimac. We believe it’s a good cultural fit and access to the Resimac distribution network will provide many benefits for both organisations”.

Consideration for the 60% acquisition was $6 million and Resimac holds an option to acquire the remaining 40%.