The Ontario Teacher Pension Plan Board announced Sept. 22 that it has entered into an agreement to acquire HomeQ Corporation, the parent company of HomeEquity Bank. The Schedule 1 bank is most widely known as the provider of the CHIP Reverse Mortgage.

The deal, wherein the pension manager will acquire HomeQ from Birch Hill Equity Partners Management Inc. and remaining minority shareholders, is expected to occur in the first half of 2022. 

“The bank is well positioned for sustained growth as more Canadians near retirement age and seek innovative solutions to create income and build wealth,” the bank said in a statement announcing the acquisition.

“HomeEquity Bank is an excellent fit for our growing portfolio of leading financial services firms,” added Karen Frank, Ontario Teachers’ senior managing director of equities. “Ontario Teachers’ has a long history of investing in successful financial services businesses in Canada and internationally and we look forward to supporting HomeEquity Bank during its next stage of growth.” 

Representatives from the pension plan were unavailable for comment about their plans for the bank or future industry acquisitions.