TORONTO - Element Financial Corp. (TSX:EFN) said Thursday that it has signed a deal to buy equipment leasing and financing company Nexcap Finance Corp. for $20 million plus debt.
"We are looking forward to supplementing Nexcap's established origination volumes by bringing a broader range of sales financing tools to these distribution channels and building deeper and more durable relationships with their customers," Element president Bradley Nullmeyer said in a statement.
Element, an equipment finance company, said the deal is expected to immediately add to earnings for shareholders.
The purchase will be financed from Element's current cash and the assumption of Nexcap's existing debt facilities.
The deal, which is subject to regulatory approval, is expected to close by Jan. 28.
Element shares were up four cents at $6.90 on the Toronto Stock Exchange on Thursday.