ECN Capital
{{Short description|Canadian fintech company}}
{{Infobox company
| name = ECN Capital Corporation
| logo = ECN_Capital_Logo.svg
| type = Public
| traded_as = {{tsx|ECN}}
S&P/TSX Composite Component
| industry = Business Services
| founded = 2016
| founder =
| hq_location_city = Toronto, Ontario
| hq_location_country = Canada
| key_people = Steven Hudson (Chief executive officer)
| website = http://ecncapitalcorp.com/
}}
ECN Capital Corporation is a Canadian financing company with managed and advised assets of approximately US$29 billion. It provides credit portfolios to 90 U.S. financial institutions and also originates, manages and advises on prime credit assets. It is listed on the Toronto Stock Exchange.
History
ECN was founded in October 2016, through a spin-off of Element Financial's equipment finance division.{{Cite news|url=https://www.theglobeandmail.com/report-on-business/element-financial-shareholders-vote-to-approve-split-of-company-into-two/article31963602/|title=Element Financial shareholders back splitting company into two|date=2016-09-20|work=The Globe and Mail|access-date=2018-04-22}} The spin-off resulted in two separate publicly traded companies: Element Fleet Management, which manages vehicle fleets, and ECN Capital, which provided commercial financing, especially to fleet owners.{{Cite news|url=https://ca.reuters.com/article/businessNews/idCAKCN0VP1N4|archive-url=https://web.archive.org/web/20160219074410/http://ca.reuters.com/article/businessNews/idCAKCN0VP1N4|url-status=dead|archive-date=February 19, 2016|title=Element Financial to split into two: fleet management and financing|date=2016-02-16|work=Reuters|access-date=2018-04-22|language=en-CA}}
In February 2017, ECN sold its US commercial and vendor finance business to PNC Capital for $1.25 billion.{{Cite news|url=https://www.bnn.ca/ecn-capital-to-sell-us-1-25b-equipment-finance-business-to-pnc-financial-1.677056|title=ECN Capital to sell US$1.25B commercial and vendor finance business to PNC Financial - Article - BNN|date=2017-02-21|work=BNN|access-date=2018-04-22}} The deal caused the company's share price to rise, in part because the sale price was above book value.{{Cite news|url=http://business.financialpost.com/news/fp-street/ecn-capital-shareholders-welcome-news-of-deal-to-sell-u-s-equipment-finance-business-for-us1-25b|title=ECN Capital shareholders welcome news of deal to sell U.S. equipment finance business for US$1.25B|date=2017-02-21|work=Financial Post|access-date=2018-04-22|language=en-US}} This deal was part of a larger attempted re-deployment of capital by ECN from vendor and equipment financing to home improvement and construction financing.{{Cite news|url=https://www.theglobeandmail.com/report-on-business/ecn-capital-moving-into-us-housing-market-triad-acquisition/article36719193/|title=ECN Capital moves into U.S. housing market with Triad acquisition|work=The Globe and Mail|access-date=2018-07-01}} As part of this re-deployment, in June 2017, the firm purchased Service Finance, an American home improvement lender, for $410 million.{{Cite news|url=https://www.reuters.com/article/us-servicefinance-m-a-ecn-capital-idUSKBN18Z1LA|title=ECN Capital to buy Service Finance for C$410 million|date=2017-06-08|work=Reuters|access-date=2018-07-01|language=en-US}} It also purchased Triad Financial, a Florida-based home improvement lender, for $100 million, in October 2017. On the other hand, in August 2017, ECN sold some of its rail car financing business for $1.44 billion. It also sold its Canadian vendor financing business for $900 million in October 2017. In December 2021 ECN sold Service Financial for US$2 Billion and used the proceeds to declare a $7.50/share special dividend that was paid out to shareholders on Dec. 22, 2021.
Business
ECN Capital currently operates in two divisions:{{Cite web|url=http://ecncapitalcorp.com/the-company/locations|title=ECN Capital: Locations|website=ECN Capital|language=en-US|access-date=2018-07-01}}
- Triad Financial, a manufactured home lender
- The Kessler Group, a payment services company