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.
Insights
Nelnet expands Canadian loan servicing scale by acquiring a 2.4M-borrower business; close expected in
Nelnet will acquire Finastra's Canadian student loan servicing business that currently services loans for 2.4 million borrowers and employs over 450 people, keeping operations headquartered in Mississauga and led by Susan Tersigni. The purchase preserves the existing team and platforms, and Nelnet intends to operate the unit independently while reporting it through Nelnet Diversified Services.
The transaction depends on customary closing conditions and a successful close in
Watch the announced close timing and any regulatory clearances in the coming quarter, along with statements on integration plans and service-level commitments. Monitor disclosures about retained contracts, employee transition details, and any material changes to the servicing platform over the next few months.
Finastra's Canadian student loan servicing business is the leading provider of student loan servicing solutions to governments and financial institutions in
"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
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
"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.
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
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?
When will Nelnet complete the acquisition of Finastra's Canadian student loan servicing business (NNI)?
Will the acquired Canadian servicing team remain in place after the NNI acquisition?
How large is the loan portfolio Nelnet is acquiring from Finastra in Canada?
Who advised Finastra and Nelnet on the transaction for NNI?
