Nelnet, Inc. has announced plans to acquire Finastra's Canadian student loan servicing business to enhance its operations in the education sector.

Information on the Target

Nelnet, Inc. has entered into an agreement to acquire Finastra's Canadian student loan servicing business, a leading provider of student loan servicing solutions for governments and financial institutions in Canada. This subsidiary of Finastra Holdings Limited offers technology-enabled managed services that cover the entire loan lifecycle and currently manages loans for 2.4 million borrowers using proprietary platforms.

This acquisition is poised to strengthen Nelnet's position in the student loan servicing sector, allowing it to leverage the experienced Canadian team that has consistently delivered exceptional service to borrowers and government entities in Canada. The integration will facilitate the continuation of independent operations in Canada, ensuring the team, under Susan Tersigni's leadership, remains intact in Mississauga, Ontario, where it employs over 450 individuals.

Industry Overview in Canada

The Canadian student loan servicing market is characterized by a blend of government and private sector contributions, aimed at facilitating higher education access through financial support. The provincial government in Canada plays a si