Westlake Financial Services (“Westlake”) and Nowcom Corporation (“Nowcom”) are pleased to announce a strategic partnership with Axis Auto Finance Inc. (“Axis”) (TSXV: AXIS), which enables Westlake to access the large and growing Canadian non-prime automotive finance market.
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- Westlake and Nowcom will invest into Axis on a private placement basis
- This partnership allows Axis to extend its product offering to cover the entire non-prime credit market
“We are very excited about our expansion into Canada and partnership with Axis,” said Ian Anderson, Group President of Westlake Technology Holdings. “The Canadian auto finance market is very similar to the United States and offers tremendous opportunities for Westlake and Axis to help auto dealers finance more customers. We look forward to growing the business together.”
Under the terms of the partnership, Westlake and Nowcom will invest, on a private placement basis, into Axis by way of convertible unsecured subordinated debentures (the “Debentures”). Axis will originate and service loans to near prime customers in Canada on behalf of Westlake. The loans will be originated under the Axis brand and profits will be shared between the parties. Nowcom will provide its leading-edge technology, DealerCenter and Carzing, to the Canadian markets to enhance communication and improve origination efficiency in auto dealers working with Axis.
“This partnership greatly enhances our leading position in the Canadian non-prime automotive finance sector and provides Westlake and Axis the opportunity to symbiotically grow our respective businesses,” said Todd Hudson, CEO of Axis. “We look forward to a long, ever expanding and mutually prosperous relationship between our two companies,” he added.
The private placement is subject to standard and customary closing conditions including the receipt of regulatory approval.
INFOR Financial Inc. acted as the exclusive financial advisor to Axis in connection with the private placement.
About Westlake Technology Holdings
Westlake Technology Holdings is an auto and finance technology company headquartered in Los Angeles, CA, with approximately US$9.8 billion in assets under management. Westlake Financial Services originates indirect automotive retail installment contracts through a nationwide network of new and used automotive and powersports dealers. Westlake also offers loan portfolio purchasing, credit facilities and portfolio servicing through their ALPS division (Advanced Lending & Portfolio Services); www.WestlakeALPS.com. Floor plan lines of credit are provided through their Westlake Flooring Services division, www.WestlakeFlooringServices.com; shared cash flow auto lending through Westlake’s wholly owned subsidiary Western Funding Inc., a Nevada based auto lender; and indirect automotive leasing for credit unions through Westlake subsidiary Credit Union Leasing of America (CULA). Dealer leads and direct-to-consumer auto loans are offered through Westlake Direct. Consumer title loans are offered through Westlake’s wholly owned subsidiary Loan Center, www.loancenter.com.
Nowcom Corporation is a technology company developing technology solutions for the automotive and financial services verticals. Nowcom is one of seven companies within The Hankey Group (US$10 billion in assets) and based in Los Angeles, CA. Nowcom not only provides technology for all The Hankey Group of companies including Westlake but also provides industry-leading software to auto dealerships through its flagship product DealerCenter (Dealer Management System) and patented IMaxx technology. Nowcom also developed first-of-its-kind, fully automated finance decision websites like Carzing.com and powers up dealers’ websites in the country with the same finance engine like BuyMcar.com. Nowcom has vast experience and the right resources to bring products from ideation to market quickly and efficiently.
About Axis Auto Finance
Axis Auto Finance is a leading Canadian provider of alternative used vehicle financing options servicing roughly 30% of Canadians (Source: Equifax) that have credit scores in the non-prime range. 100% of all Axis auto loans report to the credit bureau, resulting in a significant improvement of the credit scores for the overwhelming majority of clients. These clients use Axis as a stepping stone in their credit rebuilding journey and we are proud to be improving the lives of these Canadians. Supported by state-of-the-art, in-house developed risk analytics, Axis continues to be Canada’s fastest-growing publicly traded auto-financing company. Further information on the Company can be found at investors.axisautofinance.ca.