Warburg Pincus-led group to take ECN Capital private in $1.35 billion deal

ECN Capital

13/11/2025 23:31

Nov 13 (Reuters) - Canada's ECN Capital ECN.TO said late on Thursday a Warburg Pincus-led investor group will buy the financial services firm in a C$1.9 billion ($1.35 billion) deal, signaling growing private-equity interest in the sector following policy easing.

Financial services in Canada are expected to benefit from lower capital costs after the country's central bank cut its key benchmark rate last month, following a pause earlier this year as policymakers assessed the economic impact of U.S. tariffs on growth and prices.

Dealmaking also rebounded across the Wall Street after an earlier lull caused by macroeconomic volatility linked to U.S. trade policy.

The investor group will pay C$3.10 per common share in cash, representing a premium of 13% over Wednesday's closing price. ECN shares closed at C$3.07 on Thursday.

The deal, expected to close in the first half of 2026, would take ECN private after more than a nine-year run on the Toronto Stock Exchange, following its separation from Element Financial in October 2016.

The transaction also reflects a broader market trend of financing buyouts with cash-and-stock due to the narrowing gap between the pre-tax costs of equity and debt.

In August, Guardian Capital Group agreed to be taken private by Desjardins Global Asset Management in a C$1.67 billion deal.

ECN Capital helps banks and asset managers by creating, managing and advising on loans. It focuses on manufactured homes, recreational vehicle and marine financing using technology to simplify loan origination.

($1 = 1.4024 Canadian dollars)

 (Reporting by Ateev Bhandari in Bengaluru; Editing by Shilpi Majumdar)

 ((Ateev.Bhandari@thomsonreuters.com;))