Mr. Eddy Cocciollo reports

DOMINION LENDING CENTRES ACQUIRES FILOGIX, A LEADING CANADIAN MORTGAGE TECHNOLOGY AND CONNECTIVITY PLATFORM

Dominion Lending Centres Inc. has acquired Filogix, a mortgage technology software platform connecting Canada's mortgage brokers, suppliers and lenders. In addition, the corporation is announcing its preliminary financial results for the second quarter ended, June 30, 2026, as well as executing an amended and restated credit facility.

• Acquiring one of Canada's leading mortgage connectivity platforms, further strengthening DLC Group's technology and data capabilities across the Canadian mortgage ecosystem;
• The $58.5-million purchase price, subject to closing adjustments, was paid in cash and the acquisition is expected to be immediately accretive to adjusted EPS (earnings per share);
• Filogix is a trusted partner across the Canadian mortgage ecosystem, with deep industry relationships and a 30-year record of delivering mission-critical digital infrastructure;
• Filogix will operate as a standalone, wholly owned subsidiary, maintaining operational independence from Newton (Velocity) while ensuring uninterrupted service and continuity for customers and partners;
• DLC Group is committed to continued strategic investment into Filogix infrastructure and technology and to supporting continued growth and success alongside its users, partners and stakeholders.

Filogix acquisition overview

DLC Group has acquired Filogix from Finastra Holdings Ltd. for total cash consideration of $58.5-million, subject to closing adjustments.

Through its core products, including Expert, Expert Plus and FXLink, Filogix provides mission-critical digital infrastructure connecting more than 8,000 mortgage brokers with approximately 350 lenders and other industry participants. The Expert platform supports the end-to-end mortgage application process, from submission through underwriting, and provides workflow, compliance and data solutions to participants across the mortgage ecosystem.

"This is a highly strategic acquisition for the DLC Group," said Gary Mauris, co-founder and chief executive officer of DLC Group. "Filogix expands our technology, connectivity and data capabilities, and advances our strategy of strengthening DLC Group's position across the Canadian residential mortgage market. By bringing both Filogix and Velocity under the DLC Group banner, we significantly enhance our access to real-time market data and insights, while adding important redundancy across our critical connectivity infrastructure to ensure reliable and operational resilience for our customers," continued Mr. Mauris.

"Over its 30-year history, Filogix has become a trusted partner to brokers, lenders and suppliers. We intend to build on that foundation through continued investment in Filogix's technology, infrastructure, customer service and data security. Filogix will continue to operate as a standalone business within DLC Group, ensuring a seamless transition for customers and partners and a dedicated team focused on supporting all its partners."

"We are excited to welcome the Filogix team to the DLC Group. We believe the acquisition strengthens our competitive position, enhances our earnings and cash flow profile and supports the creation of sustainable long-term value for shareholders," concluded Mr. Mauris.

Transaction details

The acquisition adds a profitable, cash-generating business and is expected to be immediately accretive to adjusted EPS, while maintaining a conservative pro forma leverage profile.

In the trailing 12 months ended May 31, 2026, Filogix processed approximately $60-billion in annual financed mortgage volumes. DLC Group expects Filogix to contribute approximately $15-million to $18-million of adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) during the first 12 months following closing.

The $58.5-million purchase price, subject to closing adjustments, was paid in cash and financed through existing liquidity and committed credit facilities. In connection with the acquisition, DLC Group entered into an amended and restated credit agreement with The Toronto-Dominion Bank (TD), including a new $65-million term facility. Concurrently, the corporation's revolving credit facility was reduced from $40-million to $30-million, while the existing pricing grid and other key terms remained unchanged.

DLC Group's pro forma leverage is expected to be approximately 1.65 times total debt to adjusted pro forma trailing-12-month EBITDA as of June 30, 2026.

Raymond James Ltd. and Desjardins Capital Markets acted as financial advisers and Bennett Jones LLP acted as legal advisers to the DLC Group. RBC Capital Markets acted as financial advisers and Stikeman Elliott LLP acted as legal advisers to Finastra Holdings Ltd.

Preliminary Q2 2026 financial results

In conjunction with today's announcement, the DLC Group also announced preliminary Q2 2026 financial results for the three months ended, June 30, 2026.

• Financed mortgage volume is expected to grow approximately 5 per cent year over year in the second quarter of 2026 as improvement in broker productivity and growth in the renewal market more than offset weakness in the Canadian residential housing market;
• Revenue is expected to be between $24.7-million and $25-million with approximately 3.8-per-cent to 4.0-per-cent growth in franchise and brokering of mortgage revenue, partially offset by 3.7-per-cent to 4-per-cent decline in Newton revenue, due primarily to the impact of revenue reclassification in Q2 2025;
• Adjusted EBITDA is expected to be between $12.3-million and $12.6-million, and adjusted EBITDA margins are expected to be between 50 per cent to 51 per cent;
• As at June 30, 2026, total debt to adjusted EBITDA (on a trailing-12-month basis) is expected to be approximately 0.9 times.

"We continued to grow our Funded Mortgage Volume in the second quarter despite a soft housing market, reflecting continued gains in broker productivity driven by initiatives such as goal getter and, more recently, broker performance lab," said Gary Mauris, co-founder and chief executive officer of DLC Group. "While housing market activity remained softer than expected through much of the first half of the year, recent indicators suggest a gradual improvement as we enter the second half of 2026. We remain focused on executing our proven strategy of strengthening our market position through broker recruitment, investments that enhance broker productivity and disciplined capital allocation, while continuing to deliver strong profitability and maintain a strong balance sheet," concluded Mr. Mauris.

About Dominion Lending Centres Inc.

Dominion Lending Centres is one of Canada's leading networks of mortgage professionals. DLC Group operates through Dominion Lending Centres and its three main subsidiaries, MCC Mortgage Centre Canada Inc., MA Mortgage Architects Inc. and Newton Connectivity Systems Inc., and has operations across Canada. DLC Group's extensive network includes over 8,500 mortgage professionals and over 500 franchises. Headquartered in British Columbia, the corporation was founded in 2006 by Gary Mauris and Chris Kayat.