Nelnet Canada to Acquire Canadian Student Loan Servicing Business

Rhea-AI Summary

Nelnet (NYSE: NNI) announced that its wholly owned subsidiary Nelnet Canada agreed to acquire Finastra's Canadian student loan servicing business, with the transaction expected to close in Q1 2026 subject to customary closing conditions.

Key disclosed facts: the acquired business services 2.4 million borrowers on proprietary platforms, will remain headquartered in Mississauga, Ontario, and will continue operating with >450 employees and contractors led by Susan Tersigni reporting to Joe Popevis.

RBC Capital Markets advised Finastra; Stikeman Elliott advised Finastra; Osler, Hoskin & Harcourt advised Nelnet.

Positive

• 2.4 million borrowers added to Nelnet's servicing base
• Maintains independent Canadian operations headquartered in Mississauga, Ontario
• Retains >450 employees, preserving operational continuity
• Transaction expected to close in Q1 2026, providing a clear near-term timeline

Negative

• None.

LINCOLN, Neb., Oct. 23, 2025 /PRNewswire/ -- Nelnet, Inc. (NYSE: NNI), along with its wholly owned subsidiary Nelnet Canada, Inc., today announced an agreement with DH Corporation, a wholly owned subsidiary of Finastra Holdings Limited (Finastra), to acquire Finastra's Canadian student loan servicing business. The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions.

Finastra's Canadian student loan servicing business is the leading provider of student loan servicing solutions to governments and financial institutions in Canada providing technology enabled managed services across the loan lifecycle. The business currently services loans for 2.4 million borrowers on proprietary technology platforms.

"We are excited to welcome the Canadian team to Nelnet," said Jeff Noordhoek, chief executive officer of Nelnet. "This acquisition builds on our legacy of serving student loan borrowers and government partners in both the U.S. and Canada. The Canadian team has decades of experience delivering outstanding service and value to Canadian borrowers, Federal and provincial governments and financial institutions. By leveraging our financial strength, loan servicing experience, and dedication to innovation, we are excited to support their mission and build upon their success in Canada."

Nelnet, the former owner of EDULINX Canada Corporation and administrator of the Canadian Student Loan Program (CSLP), as well as various provincial and financial institution-administered programs, brings deep expertise as a provider of student and consumer loan servicing, servicing technology, and business process outsourcing.

Nelnet intends to maintain independent Canadian business operations with the full team continuing to be led by Susan Tersigni, vice president of Student Lending, reporting to Joe Popevis, president of Nelnet Diversified Services. The Canadian servicing business will remain headquartered in Mississauga, Ontario, with over 450 employees and additional contractors.

"This transaction aligns perfectly with Finastra's strategy to focus on our core strengths while ensuring our student lending business continues to grow with a partner that knows the industry well," said Chris Walters, chief executive officer of Finastra. "Nelnet's deep experience and shared commitment to customers and service excellence make them the right partner to lead this business into its next chapter."

RBC Capital Markets acted as the exclusive financial advisor to Finastra on the transaction, and Stikeman Elliott LLP acted as legal advisor.

Osler, Hoskin & Harcourt LLP acted as legal advisor to Nelnet.

About Nelnet

Nelnet is a diversified company with primary businesses being consumer lending, loan servicing, payments, and technology—all with a large customer emphasis in the education space. Headquartered in Lincoln, NEB, Nelnet has more than 6,700 associates. Learn more about Nelnet at www.nelnetinc.com.

About Finastra

Finastra is a global leader in financial services software, trusted by 8,000+ customers - including 45 of the world's top 50 banks - in over 130 countries. With expertise in Lending, Payments, Universal Banking, and Treasury & Capital Markets, Finastra delivers reliable, scalable, mission-critical solutions such as Loan IQ, LaserPro, Trade Innovation, Essence, Global PAYplus, Payments To Go, and Financial Messaging. Backed by Vista Equity Partners, Finastra co-innovates with customers to build modern technology that helps financial institutions grow with confidence. Visit www.finastra.com or follow Finastra on LinkedIn. 

View original content:https://www.prnewswire.com/news-releases/nelnet-canada-to-acquire-canadian-student-loan-servicing-business-302591550.html

SOURCE Nelnet, Inc.

FAQ

What does Nelnet's acquisition of Finastra's Canadian servicing business mean for NNI shareholders?

Nelnet gains a Canadian servicing business that services 2.4 million borrowers, expanding its loan servicing scale and geographic footprint.

When will Nelnet complete the acquisition of Finastra's Canadian student loan servicing business (NNI)?

The transaction is expected to close in Q1 2026, subject to customary closing conditions.

Will the acquired Canadian servicing team remain in place after the NNI acquisition?

Yes; the business will remain headquartered in Mississauga with over 450 employees and will continue to be led by Susan Tersigni.

How large is the loan portfolio Nelnet is acquiring from Finastra in Canada?

The acquired business currently services loans for 2.4 million borrowers on proprietary technology platforms.

Who advised Finastra and Nelnet on the transaction for NNI?

RBC Capital Markets was exclusive financial advisor to Finastra; Stikeman Elliott LLP advised Finastra; Osler, Hoskin & Harcourt LLP advised Nelnet.