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Western
HVAC News
DealNet stock gains as the company
builds its HVAC financing services business.
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Shares of DealNet Capital Corp. (CNSX:DLS) rose more than
11% Wednesday following on the heels of its One Dealer
subsidiary signing a preliminary deal for a joint marketing
program with an undisclosed "large" North American heating,
ventilation and air conditioning (HVAC) distributor last
week.
The company's stock rose 3 cents today to 29 cents, with its
shares almost doubling in the last three months.
DealNet, previously called GameCorp, recently transitioned
from the gaming industry to HVAC financing and services,
water heater rentals and business process outsourcing (BPO),
with the infrastructure of the BPO business underpinning the
HVAC delivery platform.
Its One Dealer business is designed to provide end-to-end
customer management and financing services to the HVAC
industry through a network of HVAC dealers. The subsidiary
is launching a full suite of financing and rental programs,
logistical support, customer services, wholesale product
supply and home protection plans for independent HVAC
dealers and their customers in North America.
Through One Dealer, DealNet said it plans to bring together
more than 80,000 small and intermediate-sized dealers in the
North American HVAC and water heater rental industry under
one umbrella.
The business is expected to help these dealers provide a
better customer experience by leveraging fractional call
center time through the BPO unit, and at the same time
"authorize and encourage them to sell DealNet’s finance
products and services”.
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Under the terms of
the memorandum of understanding announced last Thursday, both
One Dealer and the large HVAC distributor will work together to
design, implement and launch a "comprehensive financing and
services suite" tailored for the unnamed distributor's dealer
network.
Both parties plan to launch a pilot program in February to a
limited number of dealers, they said. The program will include
customized customer service, and warranty and financing
solutions that will allow the HVAC dealers to compete more
effectively.
A full program launch is expected to follow, subject to a
successful pilot program.
Under the deal, the parties will enter into the joint marketing
program on or before April 30.
"The HVAC market is driven by local customer-dealer
relationships with significant demand for financing and rental
programs," DealNet Capital's VP of financial services, Rick
Henry, said last week.
"Thousands of dealers direct their customers to traditional
banking institutions to negotiate finance solutions and only a
select number of dealers in the market have access to captive
rental financing solutions.
"Our goal is to assist dealers in strengthening and building on
such relationships by providing them with better access to our
unique full suite of financing and servicing solutions, creating
a win-win scenario for all market participants."
DealNet Capital
Corp. is a merchant banking firm with a growing portfolio of
high performing investee companies. With offices in Ft. Meyers
Florida, Reno Nevada and Toronto Ontario, DealNet has a flexible
investment mandate with a strategic focus on recurring revenue
businesses. Recent acquisitions in the Business Process Outsourcing
space have provided the company with an exceptional value creation
platform for investee companies enabling them to scale by leveraging
world class shared services and infrastructure.
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