St. Cloud, Minn.-based Stearns Bank, N.A., has acquired a majority stake in Canadian information and communications technology financing company Contract Capital Corp.
Stearns Bank sees the acquisition as a way to provide additional capital to allow Ontario-headquartered Contract Capital to diversify and grow in the information communications technology sector, especially as middle market and growth companies deploy their capital in acquisitions and growth investments rather than owning and self-managing their technology assets.
“We see this venture as an opportunity to propel CCC’s growth and build upon our current expertise, further diversifying our nationwide commercial lending and equipment financing capabilities,” noted Kelly Skalicky, CEO of $2.7 billion Stearns Bank.
“Through our prior experience in conventional asset financing for the information and communications technology industry, we have seen the challenge managed service providers have when sourcing capital for an as-a-service practice,” added Contract Capital CEO Chris Kerr. “With the staple backing of Stearns Bank, and their willingness to innovate, together we can help more managed service providers to scale their business.”
CCC was advised by Chicago-based consulting firm Hovde Group, LLC, and Toronto-based law firm CP LLP. Stearns Bank was advised by Minneapolis-based law firm Stinson LLP.