TORONTO - MCAN Mortgage Corporation (TSX:MKP) announced Tuesday it has acquired Xceed Mortgage Corporation in a deal worth $53 million, to be paid for with a combination of cash and common shares.
The Toronto-based company said the acquisition is expected to close within 90 days.
Under the proposal, MCAN will pay $1.75 per share in cash or a combination of cash and shares, up to a maximum of $30.3 million, for all outstanding issued and common shares in Xceed.
It said the valuation is 16.67 per cent higher than Xceed's closing price per share on the Toronto Stock Exchange as of March 25.
"We are pleased to announce this strategic acquisition that will add scale to our operating platform and expand our origination capability for single family residential mortgages," said William Jandrisits, MCAN president and chief executive officer in a statement.
It says the board of directors at Xceed have already unanimously approved the acquisition.
Xceed shareholders are expected to vote on the deal at the end of May. For the deal to go ahead, it requires the approval of no less than 66 2/3 per cent of the votes cast.
MCAN is an investment company specializing in a portfolio of mortgages.