Solifi acquires Inovatec to expand auto and specialty finance offering

Solifi has acquired cloud-based lending technology provider Inovatec Systems Corporation, expanding its capabilities across retail automotive, powersports and specialty finance.

The acquisition brings Inovatec’s digital application, loan origination and servicing technology into Solifi’s secured finance offering, extending its coverage across both retail and wholesale finance. Financial terms of the transaction have not been disclosed.

Inovatec serves banks, captive finance organisations, credit unions and specialty lenders across North America. Its platform includes the Propel digital portal, loan origination and loan management systems supporting automotive, powersports, equipment and other consumer and commercial lending markets.

Solifi said the acquisition supports its strategy of creating a more connected operating environment for lenders managing complex asset portfolios.

Dan Corazzi, CEO of Solifi, said: “Automotive finance is one of the clearest examples of why connected technology matters.

“Retail origination and servicing, wholesale finance, dealer operations, asset data and risk oversight are deeply interdependent, yet they are often managed through separate systems.

“Inovatec strengthens our ability to connect those workflows and gives Solifi an even stronger foundation to support captives, banks, credit unions and specialty lenders as their operating models evolve.”

Extending retail and wholesale capabilities

Inovatec adds digital application, credit adjudication, funding, servicing, payments and collections capabilities to Solifi’s existing technology.

Solifi’s platform already covers areas including wholesale and floorplan finance, dealer inventory oversight, asset and vehicle intelligence, risk monitoring and enterprise portfolio management.

The acquisition also expands Solifi’s reach in Canada, where Inovatec has established relationships with lenders, credit unions and specialty finance businesses.

Inovatec was founded in 2006 by Vladimir and Danijela Kovacevic and has grown to more than 160 employees, with operations across North America and Serbia.

The co-founders said: “Today, our clients are looking for more products, more channels, and greater automation – and meeting those needs requires scale.

“Solifi brings that scale, deep expertise in secured finance, and a shared perspective on the future of the industry. By bringing together our origination and servicing platforms with Solifi’s broader secured-finance solutions, we can innovate faster with more connected insights for our customers.”Solifi said both businesses will continue to support their existing customers and product roadmaps while it invests in expanding the acquired product portfolio.

Over time, the combined business plans to provide customers with greater connectivity between lending workflows, data and risk capabilities across the secured finance lifecycle.

RBC Capital Markets acted as exclusive financial advisor to Solifi, while TD Securities advised Inovatec. Stikeman Elliott and Goodwin Procter provided legal counsel to Solifi, with Torkin Manes advising Inovatec.