LOS ANGELES–(COMMERCIAL THREAD) – Westlake Financial Services (“West Lake“) and Nowcom Corporation (“Nowcom“) are pleased to announce a strategic partnership with Axis Auto Finance Inc. (“Axis“) (TSXV: AXIS), which provides Westlake with access to the large and growing Canadian non-prime auto finance market.
- Westlake and Nowcom to invest in Axis on a private placement basis
- This partnership allows Axis to extend its product offering to the entire non-prime credit market
“We are very excited about our expansion into Canada and our partnership with Axis,” said Ian Anderson, Group President of Westlake Technology Holdings. “The Canadian auto finance market is very similar to that of the United States and offers tremendous opportunities for Westlake and Axis to help auto dealers finance more customers. We are looking forward to developing the business together.
Pursuant to the Partnership, Westlake and Nowcom will invest, by way of a private placement, in Axis by way of unsecured convertible subordinated debentures (the “Debentures”). Axis will grant and manage loans to near-privileged clients in Canada on behalf of Westlake. The loans will come from the Axis brand and the profits will be shared between the parties. Nowcom will deliver its leading technology, DealerCenter and Carzing, to Canadian markets to improve communication and origination efficiency at auto dealerships working with Axis.
“This partnership greatly enhances our leadership position in the Canadian non-privileged auto finance industry and offers Westlake and Axis the opportunity to work together to develop their 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 obtaining regulatory approval.
INFOR Financial Inc. acted as exclusive financial advisor to Axis in connection with the private placement.
About Westlake Technology Holdings
Westlake Technology Holdings is an automotive and financial technology company headquartered in Los Angeles, California with approximately $ 9.8 billion in assets under management. Westlake Financial Services is the originator of indirect auto retail payment contracts through a nationwide network of new and used auto and powersports dealers. Westlake also offers the purchase of loan portfolios, credit facilities and portfolio services through its ALPS (Advanced Lending & Portfolio Services) division; www.WestlakeALPS.com. Floor plan lines of credit are provided by their Westlake Flooring Services division, www.WestlakeFlooringServices.com; the shared cash flow auto loan through Westlake’s wholly owned subsidiary, Western Funding Inc., a Nevada-based auto lender; and indirect auto leasing for credit unions through Westlake’s subsidiary, Credit Union Leasing of America (CULA). Dealer leads and direct consumer auto loans are offered by Westlake Direct. Consumer securities lending is offered through Westlake’s wholly owned subsidiary, Loan Center, www.loancenter.com.
Nowcom Corporation is a technology company that develops technology solutions for the automotive and financial services verticals. Nowcom is one of seven companies in the Hankey Group ($ 10 billion in assets) and headquartered in Los Angeles, California. Nowcom not only supplies the technology to all of the Hankey Group companies, including Westlake, but also provides cutting-edge software to car dealerships through its flagship product DealerCenter (Dealer Management System) and patented IMaxx technology. Nowcom has also developed one-of-a-kind fully automated financial decision websites, like Carzing.com, and powers dealer websites nationwide with the same financial engine as BuyMcar.com. Nowcom has extensive experience and the right resources to bring Ideation products to market quickly and efficiently.
About Axis Auto Finance
Axis Auto Finance is a leading Canadian provider of alternative used vehicle financing options serving approximately 30% of Canadians (source: Equifax) who have credit scores in the non-preferred range. 100% of all Axis auto loans are reported to the credit bureau, resulting in significant improvement in credit scores for the overwhelming majority of customers. These clients use Axis as a stepping stone in their credit rebuilding process and we are proud to improve the lives of these Canadians. Backed by state-of-the-art risk analyzes developed in-house, Axis continues to be the fastest growing publicly traded auto finance company in Canada. Further information on the Company can be found at investors.axisautofinance.ca.
Westlake Technology Holdings
Vice President of Marketing
Ax Auto Finance Inc.