Friday, February 22, 2008
Covarity Lands its Biggest Deal
Covarity Inc., a seven-year-old Kitchener company that develops software for financial institutions, has signed a major deal with HSBC Bank Canada.
The multi-year agreement to automate the setup and ongoing management of HSBC Bank Canada's margin-based commercial loans is the company's biggest deal to date, Covarity's chief executive officer, Rod Foster, said yesterday.
The value of the agreement cannot be disclosed, but the deal, along with several others that are in the works, will be "significant" to the company's growth, he said.
In fact, Covarity plans to increase its staff to 50 or more by the end of the year, up from the current complement of 30, Foster said.
Covarity started out by focusing on automating and speeding up the process of producing financial statements for loans for the customers of credit unions across the country.
But now, its solution is being picked up by world-class banks with broader name recognition, Foster acknowledged.
The HSBC Bank Canada deal is an example of that, he added.
"The size of the portfolio is substantially larger than anything else we had done at the time of signing. The requirements to be able to do business with a bank of this size are obviously deeper," he said.
About Covarity Inc.