Eltropy Acquires Lexop to Revolutionize Loan Repayment for Credit Unions
Deal News | Jan 06, 2025 | Globenewswire
Eltropy, an AI-powered unified conversation platform for community financial institutions, has acquired Lexop, a leader in debt recovery technology. This strategic move aims to modernize loan repayment and debt recovery for credit unions and community banks by integrating Lexop's innovative technology into Eltropy's communication platform. The acquisition is in line with current financial trends, including digital wallets, AI, and self-service payment. This partnership will improve payment processes, prevent defaults, and enhance the borrower experience while maintaining empathy and dignity in debt recovery. Eltropy now offers a self-service solution that simplifies debt payments, helping to prevent avoidable defaults. The acquisition reflects the significant role of financial technology innovations in addressing record consumer debt in the U.S., estimated at $17.7 billion in Q2 2024, and provides credit unions with digital solutions for improved recovery rates. The acquisition is Eltropy's third in the recent past, following POPi/o and Marsview, further enhancing its platform. Financial terms were not disclosed. The company will operate from Santa Clara and Montreal.
Sectors
- Financial Technology
- Banking
- Debt Collection
Geography
- United States – Eltropy is based in Santa Clara, California, and many of the debt recovery enhancements target U.S. financial institutions.
- Canada – Lexop, acquired by Eltropy, is headquartered in Montreal, Quebec.
Industry
- Financial Technology – Technology applied to aid and enhance banking and financial services, particularly relevant here as Eltropy and Lexop are working to implement innovative payment and recovery systems.
- Banking – Pertains to financial services provided by credit unions and community banks, integral to the operations and improvement that Eltropy and Lexop are offering.
- Debt Collection – Focused on the process of collecting overdue debts, which is the primary service enhancement being provided through the acquisition of Lexop by Eltropy.
Financials
- Not Disclosed – Financial terms of the acquisition between Eltropy and Lexop were not disclosed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Eltropy | Bidding Company | Company | AI-powered communication platform for community financial institutions, acquiring Lexop to enhance debt recovery services. |
| Lexop | Target Company | Company | Technology leader in debt recovery, offering solutions focused on borrower experience. |
| Ashish Garg | CEO and Co-Founder of Eltropy | Person | Provided a statement on the strategic acquisition and the benefits of integrating Lexop's technology. |
| Amir Tajkarimi | CEO and Co-Founder of Lexop | Person | Commented on how joining Eltropy helps reinvent loan and debt collection processes. |
| Art Sookazian | President of National Credit Union Collections Alliance 2024 | Person | Endorsed the modernization of the debt collection process provided by Eltropy and Lexop. |
| National Credit Union Collections Alliance | Other | Company | Organization that supports credit unions in improving collections and preventing defaults. |