Sigma Loyalty Group acquires Finastra’s Enhancement Services business

By Pavithra R

Finastra, a financial software solution provider has announced that the company has entered into a definitive agreement to sell its Canadian-based Enhancement Services business to Sigma Loyalty Group, a provider of enhancement services and marketing programs to Canadian financial institutions and retail partners. The transaction is expected to close by June end, subject to customary closing conditions.

The majority of net proceeds from the transaction will be used to invest in growth initiatives at Finastra, enabling the company to execute its long-term strategy. BMO Capital Markets and Stikeman Elliott LLP served as advisors for Finastra in this transaction. The financial details of the deal were not disclosed.

“This step is in keeping with our long-term strategy. Sigma Loyalty Group has significant expertise in its field and deep roots in the Canadian market. The sale will provide the right environment for our customers and employees in this space to succeed over the long term and further innovate,” said Simon Paris, CEO, Finastra.

Established in 2011, Finastra’s Enhancement Services business is one of the market leaders in credit and identity protection solutions in Canada. Its core software solutions are mainly focused on the business to business (B2B) sector and primarily serve financial institutions, while the Enhancement Services business serves the end customer. By handing over this business line to a company, already in the consumer space enables Sigma Loyalty Group to take the business forward and maximise its potential, affording new opportunities to customers.

“We’re excited about the opportunity this strategic acquisition presents, allowing us to leverage our strengths as a leader in the market and bolster our position in the enhancement services space,” said Andy Jasuja, Founder and Chairman of the Sigma Group, the parent company of Sigma Loyalty Group.

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“This deal will further extend our capabilities with even more relevant products for consumers and will help us to continue to be the go-to partner for clients across a broad range of industries,” said Serge Rivest, CEO, Sigma Loyalty Group.

Founded in 2016, Sigma Loyalty Group provides enhancement services and marketing programs for clients to build loyal and more profitable relationships with their own customers.