Desmarais-Backed Mortgage Firm Nesto Acquires Lender CMLS

<-bsp-bb-link state="{"bbHref":"bbg://securities/1805755D%20CN%20Equity","_id":"00000190-3c55-d497-a7fb-fc5daf0b0000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">Nesto Inc., a Canadian online mortgage company backed by Montreal’s Desmarais family, struck a deal to acquire real estate financier CMLS Group, vaulting it to more than C$60 billion ($43.8 billion) in mortgages under administration.

The companies didn’t disclose financial terms of the deal, which will result in a merged entity with more than 1,000 employees across 10 offices. The transaction was backed by investments from Diagram Ventures, Portage and IGM Financial — all three are affiliated with the Desmarais clan — as well as National Bank of Canada and others, according to a <-bsp-bb-link state="{"bbDocId":"SFFHA06QRTHD","_id":"00000190-3c55-d497-a7fb-fc5daf0c0000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">statement Friday.

The major banks ...