MortgageSA acquisition entrenches leadership position
MortgageSA, South Africa's largest bond originator, has acquired 100% of LoanLink for an undisclosed amount. LoanLink is the fourth largest bond originator in the country, and originates in excess of a billion Rand in home loans each month. LoanLink operates a franchise bond origination model under its established Wizard and Quantro Home Loans brands. The acquisition represents the largest transaction to date in the bond origination market.
MortgageSA's Chief Executive Officer, Saul Geffen, said that "the LoanLink acquisition enhanced MortgageSA's strategic positioning in the bond origination market and increased distribution. MortgageSA is well positioned to add significantly to the value of the LoanLink businesses."
"Acquiring the industry's largest franchise operator provides the opportunity for MortgageSA to grow a franchise network, complementing MortgageSA?s existing wholly-owned model. The deal will also enable MortgageSA to leverage its national infrastructure and expertise in mortgage sales and processing to the benefit of both groups" continues Geffen.
LoanLink's Managing Director, Piet de Jongh, said that "synergies and knowledge sharing will dramatically enhance the prospects of the LoanLink Group, its franchised brands and, importantly, the service experience of the consumer. Both the Wizard and Quantro networks are committed to service excellence."
LoanLink will continue to operate its franchise operation independently under the Wizard and Quantro brands. LoanLink's existing management is being retained in order to provide continuity and independent operation.