Element Financial said it has acquired CoActiv Capital Partners to establish a strategic U.S. vendor platform and announced $100 million equity financing to fund the transaction and related growth.

Element said the transaction delivers established vendor programs and expertise to anchor Element’s U.S. growth strategy. CoActiv generates US$220 million in annual originations through more than 15 vendor finance programs. The acquisition provides scalable U.S. and Canadian platforms with proven origination capabilities.

The company added that the complementary vendor platform provides natural fit with Element’s current business verticals and cross-border potential accelerates growth strategy. The acquisition expected to be accretive to Element’s 2013 earnings per share; acquired at 1.25 multiple to book value. The bought deal equity financing further strengthens Element’s balance sheet and provides additional capital to fund related growth. The new $300 million debt facility established to fund the acquisition and future originations.

To read Element’s news release click here.